If an individual is taxed at a 17 percent rate for each extra dollar earned,the reference is to the

Question

Quizplus · Accepted Answer

The marginal tax rate is the tax rate applied to the last dollar earned, which in this scenario is 17 percent. The nominal tax rate is the stated tax rate, but it may not reflect the actual rate paid after deductions and credits. The average tax rate is the total taxes paid divided by total income, which cannot be determined with the information given.

If an Individual Is Taxed at a 17 Percent Rate