The most relevant tax rate for making decisions about earning additional income is the ________ tax rate.

Question

Quizplus · Accepted Answer

The marginal tax rate is the rate at which the next dollar of income will be taxed. This is important when making decisions about earning additional income, as it helps to calculate how much of that income will be taxed and how much will be kept. This information is useful in deciding whether the effort and time put into earning additional income is worth the potential tax burden.

The Most Relevant Tax Rate for Making Decisions About Earning