If a person is concerned that an additional $1,000 income will move him/her into a new tax bracket, that person is worried about the:
A) proportional rate.
B) regressive tax rate.
C) marginal tax rate.
D) flat tax rate.

Question

Quizplus · Accepted Answer

The concern about moving into a new tax bracket relates to the marginal tax rate, which is the tax rate applied to the last dollar of income earned. It does not affect the proportional rate or the flat tax rate. The regressive tax rate is not relevant to this scenario.

If a Person Is Concerned That an Additional $1,000 Income