The most important tax for determining an individual's incentive to work is:

Question

Quizplus · Accepted Answer

The marginal tax rate is the tax rate applied to the last unit of income earned, and it directly affects the incentive to work. If the marginal tax rate is high, individuals may be less motivated to work as they will see a lower return on their efforts. Therefore, the marginal tax rate is the most important tax in determining an individual's incentive to work.

The Most Important Tax for Determining an Individual's Incentive to Work