Government G levies an income tax with the following ratestructure:
Percentage Rate Bracket
6 % Income from –0– to $30,000
10 Income from $30,001 to $70,000
20 Income from $70,001 to $200,000
28 Income in excess of $200,000
Taxpayer A’s taxable income is $190,700. Compute A’s tax andaverage tax rate. What is A’s marginal tax rate?
Taxpayer B’s taxable income is $762,200. Compute B’s tax andaverage tax rate. What is B’s marginal tax rate?
