For all Canadian corporations except those in the lowest and highest tax brackets, it is the case that their:

Question

Quizplus · Accepted Answer

This is because the marginal tax rate is the tax rate on the additional dollar of income earned, while the average tax rate is the total tax paid divided by total income earned. For Canadian corporations in the middle tax brackets, their marginal tax rate is higher than their average tax rate, as they pay a higher tax rate on their additional income.

For All Canadian Corporations Except Those in the Lowest and Highest