Answer:
Marginal tax rate = 34%
Average tax rate = 22.25%
Explanation:
The marginal tax rate is the rate of tax income earners incur on each additional dollar of income. As the marginal tax rate increases, the taxpayer ends up with less money per dollar earned than he or she had retained on previously earned dollars.
DATA
Income level = 100,000
Corporation Tax rates
0-50,000 = 15%
50,000 - 75,000 = 25%
75,000 - 100,000 = 34%
Marginal tax rate = 34%
Solution
Income tax owed = (15% x 50000)+(25% x 25000)+(34%*25000)
Income tax owed = 22,250
Average tax rate = 22,250/100000
Average tax rate = 22.25%
