Homework answers / question archive /  Assume that in year 1 your average tax rate is 20 percent on a taxable income of $30,000

 Assume that in year 1 your average tax rate is 20 percent on a taxable income of $30,000

Economics

Share With

 Assume that in year 1 your average tax rate is 20 percent on a taxable income of $30,000. If the marginal tax rate on the next $10,000 of taxable income is 25 percent, what will be the average tax rate if your taxable income rises to $40,000? 
Select one: a. 25 percent, X b. 22.5 percent. c. about 24 percent. d. about 21 percent.