Marginal tax rate is the percentage of an extra dollar of income that must be paid in taxes. As the tax rate increases on additional dollars earned, it may discourage production if the return on the worker’s time is less.
Glossary Term
Glossary Term
Marginal tax rate is the percentage of an extra dollar of income that must be paid in taxes. As the tax rate increases on additional dollars earned, it may discourage production if the return on the worker’s time is less.