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Chuck, a single taxpayer, earns $168,000 in taxable income and $21,750 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)
If Chuck earns an additional $47,250 of taxable income, what is his marginal tax rate on this income?
What is his marginal rate if, instead, he had $47,250 of additional deductions?
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