The amount of income tax that must be paid on an additional dollar of income is determined by the

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The marginal tax rate is the amount of income tax that must be paid on an additional dollar of income. This is because the tax system in the US is based on a progressive tax rate, where individuals pay higher tax rates on higher levels of income. The marginal tax rate is the tax rate that applies to the next dollar earned, and it is the rate that determines how much an individual will pay on additional income.

The Amount of Income Tax That Must Be Paid on an Additional