The relevant tax rate for investment decisions is the:

Question

Quizplus · Accepted Answer

The relevant tax rate for investment decisions is the marginal rate, which is the rate at which the additional dollar of income is taxed. This is because investors are concerned with the tax liability on additional income earned from an investment, and the marginal rate reflects the impact of taxes on that additional income. The average rate, lowest rate, and effective rate are unlikely to accurately reflect the tax impact on additional income earned from an investment decision.

The Relevant Tax Rate for Investment Decisions Is The