Suppose you currently earn taxable income of $100,000 per year. You are subject to an MTR of 50%. Currently, your ATR is 35 percent. Calculate your annual tax. Calculate the extra tax that you would pay per year if your annual income increased to $110,00. What is your ATR when your annual income is $110,000?© BrainMass Inc. brainmass.com October 10, 2019, 2:13 am ad1c9bdddf
The annual tax = Income X Average Tax Rate (ATR)
Annual tax = 100,000 X 35% = $35,000
The extra tax would be paid based on marginal tax rate ...
Solution provides steps necessary to calculate the taxable income.