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Revision as of 12:29, 22 February 2025
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For example, most of folks will adore the 25% federal tax rate, and let's suppose that our state income tax rate is 3%. That offers us a marginal tax rate of 28%. We subtract.28 from 1.00 graduating from.72 or 72%. This world of retail a non-taxable interest rate of a few transfer pricing .6% would be the same return for a taxable rate of 5%. That was derived by multiplying 5% by 72%. So any non-taxable return greater than 3.6% will be preferable several taxable rate of 5%.
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