Points:1 / 1Close ExplanationClose ExplanationExplanation:When Paolo earns $110,000 in taxable income, his income falls between $90,750 and $189,300. In this bracket, the marginal tax rate is 28%.That means that on the next dollar of income he earns, he will pay $0.28 in taxes.Paolo calculates that he owes$23,871.25 in income taxes for 2015.Explanation:
Points:1 / 1
< Back to AssignmentAttempts: 4--Average: 4 / 42. Taxes paid for a given income levelPaolo is getting ready to do his taxes. He is single and lives in Philadelphia. Paolo earned $110,000 in taxable income in 2015. He reviews thefollowing table, which shows the IRS tax rates for a single taxpayer in 2015.On Annual Taxable Income...The Tax Rate Is...(Percent)Up to $9,22510.0From $9,225 to $37,45015.0From $37,450 to $90,75025.0From $90,750 to $189,30028.0From $189,300 to $411,50033.0From $411,500 to $413,20035.0Over $413,20039.6Based on the IRS table, Paolo calculates that his marginal tax rate is28% when his annual taxable income is $110,000.