Asked by Mohd Ashraff Izad Sulaiman on Jun 14, 2024
Verified
Xavier is single and has taxable income of $47,375.His marginal tax rate is:
A) 10%.
B) 15%.
C) 16%.
D) 25%.
Marginal Tax Rate
The rate at which the next dollar of taxable income will be taxed, a tool used to gauge the impact of additional income or deductions on income tax.
Taxable Income
The amount of income used to calculate how much the tax will be for an individual or a corporation, after all deductions and exemptions.
- Elucidate the variations between average and marginal tax rates.
Verified Answer
OM
Olivia MillerJun 15, 2024
Final Answer :
D
Explanation :
Xavier's taxable income falls into the 25% tax bracket according to the 2020 tax tables. Therefore, his marginal tax rate is 25%.
Learning Objectives
- Elucidate the variations between average and marginal tax rates.