In making financial decisions,it is more important to know your marginal tax rate than your average tax rate.

Question

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Knowing your marginal tax rate is important because it represents the tax rate you will pay on your next dollar of income. This information can be used to make decisions about increasing your income or taking advantage of tax deductions/credits. The average tax rate, on the other hand, is calculated by dividing your total tax liability by your taxable income and may not accurately reflect the impact of additional income or deductions.

In Making Financial Decisions,it Is More Important to Know Your