If Olivia's Income Increases from $40,000 to $50,000 and Her

question 228

Multiple Choice

If Olivia's income increases from $40,000 to $50,000 and her tax liability increases from $6,000 to $9,000, which of the following is true?

• A) Her marginal tax rate is 18 percent in this range.
• B) Her marginal tax rate is 30 percent in this range.
• C) Her average tax rate was 22.5 percent when her income was $40,000.
• D) The tax structure must be regressive in the range between $40,000 and $50,000.

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