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A Marginal Tax Rate of 47% on Taxable Income Over

Question 11

Multiple Choice

A marginal tax rate of 47% on taxable income over $150 000 implies that


A) an individual with this taxable income would pay $70 000 in income tax.
B) the average tax rate is also 47%.
C) the income tax payable on any dollar earned above $150 000 is 47 cents.
D) the tax system is progressive.
E) the tax system is horizontally equitable.

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