Answer: 47.7%
Explanation:
Given Data:
Tax rate = 50% for $50,000
25% for $50,001 - 75,000
Clumsy chihuahua taxable income = $55,000
Therefore:
Clumsy chihuahuas taxable income puts him in the 25% tax rate
His first $50,000 incoming would be taxed using 50%
= 0.5 * $50,000
= $25,000
And the remaining $5,000 would be taxed using 25%
= 0.25 * $5000
= $1,250
Tax = $25,000 + $1,250
= $26,250
$26,250 / $55,000 * 100
= 0.477 * 100
= 47.7%
Though he falls on the 25% taxable income rate he would pay 47.7% from his income as tax:
