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Social Science Clinic => Economics => Microeconomics => Topic started by: ENagel on May 24, 2019

Title: "For the U.S. personal income tax, the average tax rate is greater than the marginal tax rate." Is ...
Post by: ENagel on May 24, 2019

"For the U.S. personal income tax, the average tax rate is greater than the marginal tax rate." Is the previous statement correct or incorrect?

Title: "For the U.S. personal income tax, the average tax rate is greater than the marginal tax rate." Is ...
Post by: lorealeza on May 24, 2019

The statement is incorrect. The U.S. personal income tax has marginal tax rates that increase with income, so that the marginal tax rate for a high-income taxpayer exceeds the marginal tax rate for a low-income taxpayer. As a result, the marginal tax rate exceeds the average tax rate.

Title: "For the U.S. personal income tax, the average tax rate is greater than the marginal tax rate." Is ...
Post by: ENagel on May 24, 2019

Thanks

Title: "For the U.S. personal income tax, the average tax rate is greater than the marginal tax rate." Is ...
Post by: lorealeza on May 24, 2019

Welcome :)