Chuck, a single taxpayer, earns $87,500 in taxable income and $2,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)
a. If Chuck earns an additional $5,000 of taxable income, what is his marginal tax rate on this income? Marginal rate%=
b. What is his marginal rate if, instead, he had $5,000 of additional deductions? Marginal rate%=