The appropriate tax rate to consider to gauge how much the tax system distorts incentives and decision making is the

Question

Quizplus · Accepted Answer

The marginal tax rate is the tax rate on the last dollar of income earned, which is the tax rate that affects individuals' decisions about working, investing, and saving. It is therefore the most appropriate tax rate to consider when analyzing the impact of the tax system on incentives and decision making.

The Appropriate Tax Rate to Consider to Gauge How Much