Tax Tip #201

What is the effective tax rate? What is the marginal tax rate?

A. Average tax rate (total tax / taxable income)

B. Tax rate imposed on the last dollar of income earned

C. All of the above

D. None of the above

E. Regardless of the answer, I pay TOO much in taxes 

Effective tax rate is A, marginal tax rate is B, and if you guessed D, you get an F on this test.