Ask Question
15 July, 04:39

Miranda works 40 hours a week at a wage rate of $25. Thus, her total weekly income is $1000. On this income, she pays total taxes of $80.00. However, she calculates that on the last hour that she works, she pays $3.75. Her average tax rate is 8%. What is her marginal tax rate?

+2
Answers (1)
  1. 15 July, 05:39
    0
    15%

    Explanation:

    If Miranda works 40 hours a week at a wage rate of $25. and she however calculates that on the last hour that she works, she pays $3.75. then her marginal tax rate is derived as follows

    The marginal tax rate is the incremental tax paid on incremental income.

    From the scenario, we are given the following:

    Weekly wage rate is $25.

    Weekly tax pay is $3.75

    Hence, Marginal tax rate can be computed as = $3.75 / $25 = 15%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Miranda works 40 hours a week at a wage rate of $25. Thus, her total weekly income is $1000. On this income, she pays total taxes of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers