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difficult terms for review.
What is taxable income | It is the total income less deductions and exemptions |
what is progressive tax | It is the tax rates are higher the greater one's income. |
An income tax is progressive if | If the percentage of income paid as taxes increases as income increases. |
what is a marginal tax rate | Marginal tax rate change in taxes / change in taxable income |
If you would have to pay $5000 in taxes on a $25,000 taxable income and $7000 on a $30,000 taxable income, then the marginal tax rate on the additional $5000 of income is | 40 percent and the average tax rate is about 23 percent at the $30,000 income level. |
Assume that in year 1 you pay an average tax rate of 20 percent on a taxable income of $20,000. In year 2,you pay an average tax rate of 25 percent on a taxable income of $30,000. Assuming no change in tax rates,the marginal tax rate on your additional $10,000 of income is | 35% |
What is the average tax rate | It is the ratio of total taxes paid to total taxable income |
What is taxable income
what is progressive tax
An income tax is progressive if
what is a marginal tax rate
If you would have to pay $5000 in taxes on a $25,000 taxable income and $7000 on a $30,000 taxable income, then the marginal tax rate on the additional $5000 of income is
Assume that in year 1 you pay an average tax rate of 20 percent on a taxable income of $20,000. In year 2,you pay an average tax rate of 25 percent on a taxable income of $30,000. Assuming no change in tax rates,the marginal tax rate on your additional $10,000 of income is
What is the average tax rate