If taxable income is rising and if the marginal tax rate is greater than the average tax rate,then

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When the marginal tax rate (the tax rate on the next dollar of income) is greater than the average tax rate (total tax paid divided by total income), it means that as income increases, the proportion of income paid in taxes is increasing. This scenario indicates a progressive tax system, where higher income leads to a higher tax rate applied, thus increasing the average tax rate.

If Taxable Income Is Rising and If the Marginal Tax