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Bert Faces a Progressive Tax Structure That Has the Following

Question 413

Multiple Choice

Bert faces a progressive tax structure that has the following marginal tax rates: 0 percent on the first $10,000, 10 percent on the next $10,000, 15 percent on the next $10,000, 25 percent on the next $10,000, and 50 percent on all additional income. If Bert earns $75,000, what is his average tax rate?


A) 20 percent
B) 25 percent
C) 30 percent
D) 36.67 percent

Correct Answer:

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