A deduction is worth twice as much to a taxpayer with a 30% marginal rate than to a taxpayer with a 15% rate.

Question

Quizplus · Accepted Answer

This statement is true. A taxpayer with a 30% marginal rate will save 30 cents in taxes for every $1 of deduction, while a taxpayer with a 15% marginal rate will only save 15 cents in taxes for every $1 of deduction. Therefore, the deduction is worth twice as much to the taxpayer with the 30% marginal rate.

A Deduction Is Worth Twice as Much to a Taxpayer