Asked by Jennifer Esparza on May 21, 2024
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Mr.Forbes pays $35,000,000 in federal income tax.How much is his marginal tax rate?
Marginal Tax Rate
The amount of tax paid on an additional dollar of income, used in progressive tax systems to ensure higher incomes are taxed at higher rates.
Federal Income Tax
The United States federal government imposes a financial charge on the yearly revenues of individuals, corporations, trusts, and other legal entities.
- Identify the differences between average and marginal tax rates, including their calculation procedures.
Verified Answer
VT
Learning Objectives
- Identify the differences between average and marginal tax rates, including their calculation procedures.