
Businesses and individuals are frequently concerned about their marginal tax rate, or the rate at which the next dollar earned is taxed In progressive taxation, the 80,001 st dollar earned is taxed at a higher rate than the 25.001 st dollar earned and at a lower rate than the 140,001 st dollar earned Use the following graph, showing the marginal tax rate for 2014 for single filers, to answer Exercises 23-26.
Single Filers Income Bracket | Rate |
---|---|
0–9075 | 10% |
9076–36900 | 15% |
36901–89350 | 25% |
89351–186350 | 28% |
186351–405100 | 33% |
405101–406750 | 35% |
406751+ | 39.6% |
Alan earns $85,000 per year and is considering a second job that would earn him another $10,000 annually At what rate will his tax liability (the amount he must pay in taxes) change if he takes the extra job? Express your answer in tax dollars paid per dollar earned.

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