Asked by MARIA URIEL CIFRA on Apr 25, 2024
Verified
What is the marginal tax rate and how is it determined?
Marginal Tax Rate
The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of tax applied to their highest dollar of income.
- Clarify core tax concepts, highlighting proportional and regressive tax systems, and the contrast between marginal and average tax rates.
Verified Answer
KS
Khalid Salman7 days ago
Final Answer :
The marginal tax rate is the tax rate that is applied to the next dollar of income (or the last dollar of income)that a taxpayer earns.It is determined with reference to the tax rate schedules published by the IRS.
Learning Objectives
- Clarify core tax concepts, highlighting proportional and regressive tax systems, and the contrast between marginal and average tax rates.