7 A marginal tax rate isO a) the tax rate paid on a worker's next dollar of income.b) the total tax paid divided by the amount of taxable income.c) applied only to high earners under a progressive income tax system.d) equal to a worker's income tax bracket.e) irrelevant for making decisions about earning extra income.

Marginal Tax Rate : The Marginal tax rate can be defined as the the tax rate that is applicable for…

A marginal tax rate is a) the tax rate paid on a worker's next dollar of income. O b) the total tax paid divided by the amount of taxable income. Oc) applied only to high earners under a progressive income tax system. O d) equal to a worker's income tax bracket.

A marginal tax rate is a) the tax rate paid on a worker's next dollar of income. O b) the total tax paid divided by the amount of taxable income. Oc) applied only to high earners under a progressive income tax system. O d) equal to a worker's income tax bracket.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 12SQ

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Question

A marginal tax rate is
O a) the tax rate paid on a worker's next dollar of income.
b) the total tax paid divided by the amount of taxable income.
c) applied only to high earners under a progressive income tax system.
d) equal to a worker's income tax bracket.
e) irrelevant for making decisions about earning extra income.

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