Chuck, a single taxpayer, earns $86,000 in taxable income and $20,000 in interest from an investment in City of Heflin bonds. (Use the U.S.tax rate schedule.)
a. If Chuck earns an additional $53,000 of taxable income, what is his marginal tax rate on this income?
b. What is his marginal rate if, instead, he had $53,000 of additional deductions?