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Furkat [3]
3 years ago
13

G refer to the given data. if your taxable income increases from $4,000 to $5,000, you will encounter a marginal tax rate of:

Business
1 answer:
saul85 [17]3 years ago
8 0
<span>The marginal tax rate is simply the tax rate given in the income tax table. For example, if the table says that people who make up to $4999.99 pay a tax of 10% and that people who make more than $4999.99 but less than $10,000 (for example) pay a tax of 20%, then if your income increases from $4,000 to $5,000, the marginal tax rate you encounter would now be 20%. For a better understanding, notice the word marginal. In economics, this means the 'cost of one additional unit' of something. Thus, the marginal tax rate is the tax on 1 additional dollar of income.</span>
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