Prosperity Caucus » fact http://prosperitycaucus.org Economics by the Slice Fri, 18 May 2012 16:12:15 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Fact of the Week http://prosperitycaucus.org/2009/02/10/fact-of-the-week/ http://prosperitycaucus.org/2009/02/10/fact-of-the-week/#comments Tue, 10 Feb 2009 16:27:10 +0000 admin http://prosperitycaucus.org/?p=77 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.
m = \frac{\Delta t}{\Delta i}
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