Asked by
Shannon Dieumegard
on Dec 05, 2024Verified
Suppose Governor Meridias decides to initiate a state income tax.The first $50,000 of household income is tax-free,while any income above $50,000 is taxed at 10%.A household earning $50,000 has a marginal tax rate of _____% and a tax rate of _____%.
A) 10;10
B) 10;0
C) 0;0
D) 0;10
Marginal Tax Rate
The tax rate on an additional dollar of income, which can increase as the taxpayer's income grows.
Tax Rate
The percentage at which an individual or corporation is taxed on their income or profits.
- Understand the concept and application of marginal and average tax rates.
Verified Answer
JH
Learning Objectives
- Understand the concept and application of marginal and average tax rates.