Fact of the Week
10 February 2009
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Marginal Tax Rate:
A marginal tax rate is the tax rate that applies to the last dollar of the tax base (taxable income or spending), and often applied to the change in one’s tax obligation as income rises:
- To calculate the marginal tax rate on an income tax:
- Let m be the marginal tax rate.
- Let t be the tax liability.
- Let i be the taxable income.
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