Marginal tax rate shows:
a. the average rate of taxation in the economy
b. the percentage of income which a typical family pays in tax
c. the deductions which are permitted for child care and medical expenses
d. the extra tax due on an extra dollar of income
Marginal Tax Rate:
When looking at the "margin," you are evaluating a unit-by-unit change. This concept is also applied to the marginal tax rate.
Answer and Explanation:
The marginal tax rate is defined as the percentage of your income that will be taken in taxes for the next dollar earned. When looking at the marginal...
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Intro to Business: Help and ReviewChapter 24 / Lesson 8