A taxpayer's average tax rate is the tax rate applied to an incremental amount of taxable income that is added to the tax base.

Name: A taxpayer's average tax rate is the tax rate applied to an incremental amount of taxable income that is added to the tax base.
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The average tax rate is the total tax paid divided by the total taxable income, while the marginal tax rate is the rate applied to an incremental amount of taxable income.

A Taxpayer's Average Tax Rate Is the Tax Rate Applied