The ____ is the fraction of each additional dollar of income that is paid in taxes.
A)deferred tax rate
B)cumulative tax rate
C)average tax rate
D)marginal tax rate

Question

The ____ is the fraction of each additional dollar of income that is paid in taxes.
A)deferred tax rate 
B)cumulative tax rate 
C)average tax rate 
D)marginal tax rate

Quizplus · Accepted Answer

The marginal tax rate is the fraction of each additional dollar of income that is paid in taxes. This rate increases as income increases, and it allows individuals to calculate the impact of a raise or additional income on their tax burden.

The ____ Is the Fraction of Each Additional Dollar of Income