If the change in tax payable is $1,500 and the change in taxable income is $10,000, what is the MRT?

To determine the marginal tax rate (MRT), you can use the formula:

MRT = (Change in tax payable) / (Change in taxable income)

In this case, the change in tax payable is $1,500, and the change in taxable income is $10,000. Plugging these values into the formula gives you:

MRT = $1,500 / $10,000 = 0.15, or 15%.

Therefore, the marginal tax rate is 15%.

This indicates that for each additional dollar of taxable income, $0.15 will be paid in tax. It's important to note that this calculation reflects the change in tax relative to the change in income, emphasizing the portion of additional income that is taken as tax. This understanding is fundamental in economic analysis, as it helps assess how changes in income affect tax liabilities.