Larry Faces a Progressive Tax Structure That Has the Following

question 392

Multiple Choice

Larry faces a progressive tax structure that has the following marginal tax rates: 0 percent on the first $10,000,10 percent on the next $10,000,15 percent on the next $10,000,25 percent on the next $10,000,and 50 percent on all additional income.If Larry earns $75,000,what is his average tax rate?

• A) 20 percent
• B) 25 percent
• C) 30 percent
• D) 36.67 percent

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