Tax Tip #201
Ralph Loggia • June 25, 2024
Tax Rate Lesson
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.
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