Unformatted text preview: to invest. c. This is tax evasion because she is lying about when she got income in order to avoid higher tax brackets. 2.a.1700+(51900-17000)(.15)=6935 tax liability, 15% marginal tax rate, and the ave tax rate=6935/51900= 13.36%. b.42449+(186200-174400)(.33)=46343 tax liability, 33% marginal tax rate, and the ave tax rate=46343/186200= 24.89%. c.106637.50+(446300-379150)(.35)= 130140 tax liability, 35% marginal tax rate, and the ave tax rate=130140/446300= 29.16%...
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- Fall '07
- Marginal Tax Rate, Tax avoidance and tax evasion