At high levels of taxable income,the average tax rate and the marginal tax rate will always be the same.

Question

Quizplus · Accepted Answer

At high levels of taxable income, the average tax rate may be lower than the marginal tax rate due to various deductions, exemptions, and credits. The marginal tax rate is the tax rate on the last dollar earned, while the average tax rate is the total tax paid divided by the taxable income.

At High Levels of Taxable Income,the Average Tax Rate and the Marginal