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Marginal tax rate shows: a. the average rate of taxation in the economy b. the percentage of...

Question:

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...

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What is a Marginal Tax Rate? - Definition & History

from Intro to Business: Help and Review

Chapter 24 / Lesson 8
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