Suppose a state has the following individual income tax structure. The first $20,000 that an individual earns is taxed at 5%. The next $30,000 is taxed at 10%. Any income exceeding $50,000 is taxed at 20%. Based on this tax structure, if a person's income rises from $45,000 to $55,000, his marginal tax rate is:
A)25%
B)20%
C)10%
D)15%

Question

Suppose a state has the following individual income tax structure. The first $20,000 that an individual earns is taxed at 5%. The next $30,000 is taxed at 10%. Any income exceeding $50,000 is taxed at 20%. Based on this tax structure, if a person's income rises from $45,000 to $55,000, his marginal tax rate is:
A)​25%
B)​20%
C)​10%
D)​15%

Quizplus · Accepted Answer

The Answer of Suppose a state has the following individual income tax structure. The first $20,000 that an individual earns is taxed at 5%. The next $30,000 is taxed at 10%. Any income exceeding $50,000 is taxed at 20%. Based on this tax structure, if a person's income rises from $45,000 to $55,000, his marginal tax rate is:
A)​25%
B)​20%
C)​10%
D)​15%

Suppose a State Has the Following Individual Income Tax Structure