Final answer:
To calculate the marginal tax rate, identify the tax brackets and their corresponding rates, determine the income range, and find the tax rate for the additional dollar earned.
Step-by-step explanation:
The marginal tax rate is the tax rate paid on the last dollar of income. In this case, Chuck's income is not given in the question, so we cannot calculate the marginal tax rate specifically for Chuck. However, I can explain how to calculate the marginal tax rate using the example provided.
- First, identify the tax brackets and their corresponding tax rates. In this example, the tax rates are 10%, 15%, and 25%.
- Next, determine the income range that Chuck falls into based on the given tax brackets. For each income range, calculate the amount of tax that would be owed.
- Lastly, the marginal tax rate is the tax rate paid on the additional dollar earned. It is the tax rate of the income range in which the additional dollar falls.
For example, if Chuck's income falls between $0 and $9,075, his marginal tax rate would be 10%. If his income falls between $9,075 and $36,900, his marginal tax rate would be 15%. If his income is $35,000, which falls into the $9,075 to $36,900 range, his marginal tax rate would be 15%.