Suppose that Justin Trudeau decides to initiate a revision of the federal income tax structure.The first $50 000 of household income is tax-free,while any income above $50 000 is taxed at 10%.The marginal tax rate for a household earning $75 000 is:

Question

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The marginal tax rate is the rate on the next dollar of income, which is 10% for income above $50,000. The average tax rate is the total tax paid divided by total income, which is less than 10% for a $75,000 income because only $25,000 is taxed at 10%, making the marginal rate greater than the average rate.

Suppose That Justin Trudeau Decides to Initiate a Revision of the Federal