Asked by Ruben Martinez on May 28, 2024
Verified
Your ________ tax rate measures the total taxes you pay divided by your taxable income.
A) deductible
B) residual
C) total
D) average
E) marginal
Taxable Income
The amount of income used to calculate how much the individual or company owes in taxes to the government.
Total Taxes
The cumulative amount of state, federal, and other government taxes charged on a company's or individual's income and activities.
Deductible
An amount subtracted from an insurance claim payment.
- Describe and contrast the definitions of average and marginal tax rates.
Verified Answer
IN
Ijeoma NebolisaMay 29, 2024
Final Answer :
D
Explanation :
Your average tax rate is calculated by dividing the total amount of taxes you pay by your taxable income, providing a percentage that represents the average rate at which your income is taxed.
Learning Objectives
- Describe and contrast the definitions of average and marginal tax rates.