Unformatted text preview: Average Tax Rate = = = 20.16% Jorge and Anita’s effective tax rate is 15.92 percent. Effective tax rate = = = 15.92% Jorge and Anita are currently in the 28 percent tax rate bracket. Their marginal tax rate on increases in income up to $59,250 and deductions up to $12,700 is 28 percent. (40) [LO3] Using the facts in the previous problem, if Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? What is their marginal rate if, instead, they reported an additional $100,000 in deductions? If Jorge and Anita earn an additional $100,000 of taxable income, their marginal tax rate on the income is 30.04 percent....
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- Spring '10
- Progressive Tax, Taxation in the United States, Anita