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Business, 13.03.2020 19:22 mez59

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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Assume that in year 1 you pay an average tax rate of 20 percent on a taxable income of $20,000. In y...

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