Asked by Charles Griffey on Jul 15, 2024
Verified
If you earned an additional $1,000 of taxable income and paid $220 in taxes on that income,what would your marginal tax rate be?
Marginal Tax Rate
The rate at which the last dollar of a person's income is taxed, demonstrating how much tax the individual will pay on an additional dollar of income.
Taxable Income
The portion of an individual's or corporation's income that is subject to taxes by the government.
Taxes
Compulsory charges imposed on individuals or entities by governments used to fund public services and government obligations.
- Differentiate between marginal and average tax rates and how to calculate them.
Verified Answer
KS
Learning Objectives
- Differentiate between marginal and average tax rates and how to calculate them.