
Concept explainers
Marginal tax rate. 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 80,001st dollar earned is taxed at a higher rate than the 25,001st dollar earned and at a lower rate than the 140,001st dollar earned. Use the following graph, showing the marginal tax rate for 2018 for single filers, to answer Exercises 49–52.
50. Marcy and Tyrone work for the same marketing agency. Because she is not yet a partner, Marcy’s year-end income is approximately $95,000; Tyrone’s year-end income is approximately $190,000. Suppose one of them is to receive another $5000 in income for the year. Which one would keep more of that $5000 after taxes? Why?

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Chapter 3 Solutions
Pearson eText Calculus and Its Applications, Brief Edition -- Instant Access (Pearson+)
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