Typically, the average tax rate for a person is ________ his or her marginal tax rate, because the marginal tax rate applies to ________.
below; all income
below; the first dollars taxed but not to all income
below; the last dollars taxed but not to all income
above; the last dollars taxed but not to all income
above; the first dollars taxed but not to all income
below; the last dollars taxed but not to all income
Explanation: Marginal tax rate is the tax rate applied on the last dollar earned.
Typically, the average tax rate for a person is ________ his or her marginal tax rate,...
Ann s average income tax rate is 30%, and her marginal income tax rate is 37%. Her property tax bill for 2015 was $12,000 and her total interest payment on her mortgage was $9,500. Based on this information, what is Ann s total income tax shield (i.e. how much is Ann saving on her income taxes)
Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. Use the appropriate Tax Tables and Tax Rate Schedules. Single taxpayer, taxable income of $38,862. Single taxpayer, taxable income of $89,889. (For all requirements, use the tax tables to compute tax liability. Round "Average tax rate" to 2 decimal places.) Tax liability Marginal tax rate Average tax rate a. % % b. % %
Robert's marginal tax rate is 37% and his average tax rate is 20%. Robert is considering making a $10,000 charitable contribution at year-end. Which of the following is true? A. Making the charitable contribution could save him $3,700 in taxes. B. His "true" after-tax cost of the charitable contribution is $8,000 assuming he itemizes. C. If he takes the standard deduction, the charitable contribution will have no effect on his taxes. D. A and C are true. E. B and...
Quiz 12. The marginal tax rate will eventually exceed the average tax rate for a: a. proportional tax. b. regressive tax. progressive tax. d. flat-rate tax. 13. Marginal tax rates were reduced in 2001. Other things being equal, this is likely to: a. increase tax evasion. b. decrease tax evasion, c. have no effect on tax evasion. d. increase tax avoidance. 14. If the marginal tax rate is 20% under a proportional tax rate structure, the average tax rate: Ca....
1.1 Which of the following is incorrect (not true) about marginal and average tax rates? In a proportional income tax system, the marginal tax rate is higher than the average tax rate. In a regressive income tax system, the marginal tax rate is lower than the average tax rate. None of the listed answers is incorrect. In a progressive income tax system, the marginal tax rate is higher than the average tax rate. 1.2 Which of the following represents an...
Marginal tax rate Partner A, a single taxpayer, is one of two partners in a small business. As such, she receives pass-through income that is taxed at her personal tax rates. After all adjustments and deductions have been made, including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year. Using the tax rate schedule given below perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship...
Keep the Highest: /3 Attempts: 5. Computing the implicit marginal tax rate Suppose Kate is a single parent with one child, and she is trying to determine the effect of transfer benefits and taxes on her implicit marginal tax rate (and thus her incentive to work). The following table shows the transfer benefits and income taxes at various income levels in the economy in which Kate resides. Compute the spendable income level Kate would have at each level of earned...
Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases.Use the appropriate Tax Tables and Tax Rate Schedules. Single taxpayer, taxable income of $36,162.Single taxpayer, taxable income of $89,889.
Washington family Income = $62,000 Average tax rate: % Marginal tax rate: Lee family Income = $123,000 Average tax rate: % Marginal tax rate: Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in the table. Income range Tax rate $0-$20,000 0% 31% $20,001-$39,000 $39,001-$70,000 $70,001+ 42% 50% Use the table to calculate the average tax rate and marginal tax rate for each of the families. Where applicable, round your answer to...
Which of the following is true about the marginal tax rate? The marginal tax rate is calculated as the total amount of taxes paid divided by the taxable income. The marginal tax rate is the tax rate for the last dollar of income. The marginal tax rate is the tax rate applied to every dollar of income. The marginal tax rate always increases with a corporation's income.