Final answer:
A person with a taxable income of $9,710 pays $1.50 more in taxes compared to a person with a taxable income of $9,700 when the marginal tax rate is 15%.
Step-by-step explanation:
To determine how much more a person pays in taxes with a taxable income of $9,710 versus $9,700, it is important to understand the concept of marginal tax rate. Referring to the information provided, income from $0 to $9,075 is taxed at 10%, and income from $9,075 to $36,900 is taxed at 15%. Therefore, the marginal tax rate that applies to both $9,700 and $9,710 is 15%.
Here is how we calculate the additional taxes:
- The difference in income is $9,710 - $9,700 = $10.
- This $10 is in the 15% marginal tax bracket.
- Therefore, the extra tax paid on the additional $10 is 15% of $10, which is $1.50.