The highest tax rate a taxpayer is charged on his or her federal tax return is called the ________ rate.
A) marginal
B) average
C) maximum
D) true

Question

Quizplus · Accepted Answer

The correct term for the highest tax rate a taxpayer is charged on his or her federal tax return is the marginal tax rate. This is because the marginal tax rate is the rate at which the last dollar of income earned is taxed, while the average tax rate is the total amount of tax paid as a percentage of total income earned. The maximum tax rate and true tax rate are not commonly used terms in tax law.

The Highest Tax Rate a Taxpayer Is Charged on His