The marginal tax-rate structure of the income tax makes it possible to earn income that puts you in a higher bracket so that you wind up paying more additional taxes than the additional income you earned.

Question

Quizplus · Accepted Answer

The marginal tax rate applies only to the income earned within that bracket, not to all of the taxpayer's income, so you will always have more after-tax income when you earn more pre-tax income.

The Marginal Tax-Rate Structure of the Income Tax Makes It