Question

suppose marcie has been offered a new assignment at work which comes with a $300 increase in her weekly wage. the catch is that the assignment would require her to work a bit longer so that she would need to pay for extended care for her child in the amount of $200 per week. further, suppose that marcies federal marginal tax rate is 22%. she lives in texas so she does not have to pay any state income tax. but she would also need to pay 6.2% social security tax and 1.45% medicare tax on those additional earnings. use at least 3 decimal points in your answer and all intermediate calculations. given this information: 1. marcies overall marginal tax rate (the sum of the above tax rates) is select %. 2. select 28.2 20.55 45.45 22 29.65 37.8 ent she would have to pay $ in taxes on her additional weekly earnings. 3. dditional weakly earnings would be $ 4. int. should she accept the new work assignment? select (in answering this question you can assume that she is unable to use any tax breaks/deductions for the

Explanation:

Step1: Calculate overall marginal tax rate

Sum the tax - rates: $22\%+6.2\% + 1.45\%=29.65\%$

Step2: Calculate tax on additional earnings

The additional earnings are $300$. Tax amount $=300\times0.2965 = 88.95$

Step3: Calculate net additional earnings

Net additional earnings=Additional earnings - Tax - Child - care cost. Net additional earnings=$300-88.95 - 200=11.05$

Answer:

1. $29.65$
2. $88.95$
3. $11.05$
4. Yes