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Average and marginal tax rates

Average and marginal tax rates: Finance Foundations: Income Taxes
Average and marginal tax rates: Finance Foundations: Income Taxes

Economists say that a more important rate than the average tax rate is the marginal tax rate. The marginal tax rate is the rate you will pay on the next dollar of income that you make. The reason that this is an essential concept from an economic standpoint is that this marginal rate is the rate that you should have in mind when you're considering putting in some extra time and effort and risk to make more money.

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Skill Level Beginner
2h 4m
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Business Accounting Business Skills Marketing Finance

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