In the United States, the marginal tax rate on individual federal income tax

A) decreases as income increases.
B) increases as income increases.
C) is constant at all income levels.
D) applies only to payroll taxes.

Marginal Tax Rate

The rate of tax applied to your income for each additional dollar of income, representing the percentage of tax applied to your last dollar of income.

Federal Income Tax

The tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Payroll Taxes

Charges assessed on employers or their employees, typically based on a percentage of the compensation paid to workers.