Problem:
Chuck, a single taxpayer, earns $57,500 in taxable income and $17,500 in interest from an investment in City of Heflin bonds. (Use the 2013 U.S. tax rate schedule.)
Required:
Question 1: If Chuck earns an additional $28,500 of taxable income, what is his marginal tax rate on this income?
Question 2: What is his marginal rate if, instead, he had $28,500 of additional deductions?
Note: Please provide through step by step calculations.