The extra tax that is paid by a taxpayer on their next additional dollar of income is called:

Question

Quizplus · Accepted Answer

The definition provided matches the concept of marginal tax rate, which refers to the extra tax that a taxpayer has to pay on the next dollar earned. The other options are not directly related to this definition. Deadweight loss is a loss of economic efficiency due to market inefficiencies, a consumption tax is a tax based on consumption rather than income, and the average tax rate is the total amount of taxes paid divided by the taxable income.

The Extra Tax That Is Paid by a Taxpayer on Their