Problem:
Jamie has taxable income of $45,000. She is single and her tax rates are 10% on the first $7,000 of taxable income, 15% of the amount over $7,000 up to $28,400 of taxable income and 25% on the reaminder.
Required:
Question: What is Jamie's tax reliability, her marginal tax rate, and her average tax rate.
Note: Provide specific examples to support your answers.