The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

Name: The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The effective tax rate is calculated by dividing the taxpayer's total tax by their taxable and nontaxable income. This provides a more accurate representation of the taxpayer's overall tax burden than just looking at their marginal tax rate.

The Effective Tax Rate Expresses the Taxpayer's Total Tax as a Percentage