1. Assume your marginal tax rate, combined federal, state, and local, is 34.1 percent. How many extra dollars must you earn in order to make up for a discretionary spending of $100?
2. Imagine that your total gross income for the year is 108.7 thousand. After all the deductions and exemptions, you find that your taxable income is 71.6 thousand. Assume the federal tax brackets are as follows:
0-9k: 10%
9-36k: 15%
36-88k: 25%
88-183k: 28%
183-398k: 33%
3. Imagine that your total gross income for the year is 91.8 thousand. After all the deductions and exemptions, you find that your taxable income is 82.9 thousand. Assume the federal tax brackets are as follows:
0-9k: 10%
9-36k: 15%
36-88k: 25%
88-183k: 28%
183-398k: 33%
What is your average federal tax rate? (What percent of your gross income is lost via taxes?)
Enter answer in percents, accurate to 2 decimal places.
4. Imagine that your total gross income for the year is 91.5 thousand. After all the deductions and exemptions, you find that your taxable income is 77.3 thousand. Assume the federal tax brackets are as follows:
0-9k: 10%
9-36k: 15%
36-88k: 25%
88-183k: 28%
183-398k: 33%
What your marginal federal tax rate? (What percent of your next dollar earned is lost via taxes?)
Enter answer in percents, accurate to 2 decimal places.