The _____ rate on income represents the additional tax an individual pays if his or her income goes up by $1.Threshold amount for the highest rate has been _____ since 1985.

Question

Quizplus · Accepted Answer

The statement mentions that the rate on income represents the additional tax an individual pays if his or her income goes up by $1, which refers to the marginal tax rate. Additionally, it mentions that the threshold amount for the highest rate has been increasing since 1985, indicating that the marginal tax rate has been increasing for higher income levels. Therefore, the best choice is C - marginal tax; increasing.

The _____ Rate on Income Represents the Additional Tax an Individual