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QUESTION
The taxpayer's marginal tax bracket is 35%. which would the taxpayer prefer?
The taxpayer's marginal tax bracket is 35%. which would the taxpayer prefer?
a $1.35 taxable income rather than $1.00 tax-exempt income
b $1.65 taxable income rather than $1.00 tax-exempt income
I know the answer is b due to (1.65 * 35% is still higher than the $1.00 tax exempt), I need to know the logic
