For most tax payers,their average tax rate is lower than their marginal tax rate.

Name: For most tax payers,their average tax rate is lower than their marginal tax rate.
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This is because the marginal tax rate only applies to the additional income earned in a higher tax bracket, while the average tax rate is the total tax paid divided by the total income, which takes into account the lower tax rates applied to the first portion of income.

For Most Tax Payers,their Average Tax Rate Is Lower Than