Scenario 13-3
A taxpayer faces the following tax rates on their income:
20 percent of the first $40,000 of their income;30 percent of all their income above $40,000.
Refer to Scenario 13-3. The taxpayer faces a marginal tax rate of
a. 20 percent when her income rises from $40,000 to $40,001.
b. 0 percent when her income rises from $30,000 to $30,001.
c. 10 percent when her income rises from $40,000 to $40,001.
d. 20 percent when her income rises from $30,000 to $30,001.