The average tax rate and marginal tax rate are the same under a progressive tax rate structure.

Question

Quizplus · Accepted Answer

The average tax rate is the total amount of taxes paid divided by taxable income, while the marginal tax rate is the tax rate on the last dollar of income earned. Under a progressive tax system, the marginal tax rate increases as income increases, resulting in a higher marginal tax rate than the average tax rate.

The Average Tax Rate and Marginal Tax Rate Are the Same