Assuming at the $50,000 Income Level That the Corporate Tax

question 93

Multiple Choice

Assuming at the $50,000 income level that the corporate tax rate increases from 15% to 25%, which of the following statements is correct for a firm with $75,000 of taxable income?

• A)its marginal tax rate is 15%.
• B)its average tax rate is 25%.
• C)its marginal tax rate is 18.33%.
• D)its average tax rate is 18.33%.

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