One's average tax rate is typically lower than or equal to one's marginal tax rate.

Name: One's average tax rate is typically lower than or equal to one's marginal tax rate.
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

This is because the marginal tax rate is the rate at which the last dollar earned is taxed, whereas the average tax rate is the total tax paid divided by total income. Since tax rates are typically progressive (meaning they increase as income increases), the marginal tax rate is often higher than the average tax rate.

One's Average Tax Rate Is Typically Lower Than or Equal