The marginal tax rate will eventually exceed the average tax rate for a:

Question

Quizplus · Accepted Answer

The marginal tax rate is the tax rate applied to the last dollar earned, while the average tax rate is the total amount of taxes paid divided by the total income earned. In a progressive tax system, as income increases, the tax rate also increases. This means that the marginal tax rate will eventually be higher than the average tax rate as the individual moves up the tax brackets.

The Marginal Tax Rate Will Eventually Exceed the Average Tax