Assume That in Year 1 You Pay an Average Tax

question 187

Multiple Choice

Assume that in year 1 you pay an average tax rate of 20 percent on a taxable income of $20,000. In year 2, you pay an average tax rate of 25 percent on a taxable income of $30,000. Assuming no change in tax rates, the marginal tax rate on your additional $10,000 of income is

• A) 5 percent.
• B) 12 percent.
• C) 35 percent.
• D) 42 percent.

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Definitions:

Audience's Level

The general knowledge, experience, or expertise that an audience possesses, influencing how information should be communicated to them.

Biases

Prejudices or predispositions toward one thing, person, or group compared to another, often in an unfair way.

Supporting Information

Additional data or documentation that provides context, background, or further detail to the main points or arguments presented.

"You" Attitude

A communication style that focuses on the needs, interests, and feelings of the audience, rather than the speaker.