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The Coolidge family had taxable income of $165,000 in 2006. They live in a state in which income over $100,000 is taxed at 11%. What was their total effective (marginal) tax rate?
Use the following tax brackets for taxable income:
Bracket
Tax Rate
$0-$10,000
15%
$10,000-$50,000
25%
$50,000-$250,000
30%
Over $250,000
35%
Compute the average tax rate for the following taxable income amounts:
a. $20,000
b. $125,000
c. $350,000
d. $1,000,000
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