If a tax has a progressive rate structure, a taxpayer's average rate is greater than her marginal rate.

Name: If a tax has a progressive rate structure, a taxpayer's average rate is greater than her marginal rate.
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In a progressive tax system, a taxpayer's marginal rate (the rate on the last dollar of income) is higher than the average rate (total tax paid divided by total income), because as income increases, the tax rate on additional income also increases.

If a Tax Has a Progressive Rate Structure, a Taxpayer's