Question - Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule).
a. If Scot and Vidia earn an additional $70,000 of taxable income, what is their marginal tax rate on this income?
b. How would your answer differ if they, instead, had $70,000 of additional deductions?