Which term defines the tax rate that applies to the next dollar of taxable income earned?

Question

Quizplus · Accepted Answer

The term that defines the tax rate that applies to the next dollar of taxable income earned is known as the marginal tax rate. This rate only applies to the additional income earned, whereas the average tax rate is the total income tax paid divided by total taxable income. Deductible refers to expenses that can be subtracted from taxable income, residual refers to the amount remaining after all other expenses have been paid, and total refers to the overall sum of something. Therefore, option E - Marginal, is the best choice.

Which Term Defines the Tax Rate That Applies to the Next