Suppose you graduate with an accounting degree and then become a certified public accountant.You work for a big firm but are offered a chance to prepare tax documents for your city government as an independent contractor.The city offers to pay you a consulting fee of $10,000.When deciding whether to accept the additional work,the most important tax factor in your decision is

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The most important tax factor in this decision is the marginal tax rate. This is because the consulting fee will be taxed at the highest tax rate that the individual falls under, which is the marginal tax rate. Therefore, it is important to consider the impact of the additional income on the individual's marginal tax rate and whether it is worth accepting the additional work based on the resulting tax implications.

Suppose You Graduate with an Accounting Degree and Then Become