Suppose the Income Tax Rate Is Zero on the First

Multiple Choice

Suppose the income tax rate is zero on the first $10,000;is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on all income above $70,000.Family A has income of $100,000 while Family B has income of $40,000.The marginal tax rate on the two families are

A) 40% on A and 10% on B.
B) 30% on A and 20% on B.
C) 40% on A and 20% on B.
D) 30% on A and 30% on B.