contestada

The marginal tax rate is equal to the_______.

a. total amount of a person's tax payment divided by the total amount of the person's taxable income.
b. total amount of a person's tax payment divided by the change in the person's taxable income.
c. change in the person's tax payment divided by the total amount of the person's taxable income.
d. change in the person's tax payment divided by the change in the person's taxable income.

Respuesta :

Answer:

The correct answer is option d.

Explanation:

The marginal tax rate is the ratio of change in the tax rate and change in the tax base. In other words, it is the ratio of change in an individual's tax payment and change in his/her taxable income.  

It can be defined as the tax rate on an additional dollar of income. If the marginal tax rate increases with the increase in income, the taxation system is progressive.