Question 1
The average tax rate is
◦ total income divided by the total tax rate.
◦ the total amount of tax paid divided by total income.
◦ the marginal tax rate multiplied by the tax base.
◦ taxable income multiplied by the tax rate.
Question 2
The marginal tax rate is the tax rate paid on
◦ all income earned.
◦ all supplemental income.
◦ any additional income earned.
◦ taxable retirement income.