Suppose a Taxpayer Has an Income of $100,000 and a Taxable

question 61

Multiple Choice

Suppose a taxpayer has an income of $100,000 and a taxable income of $80,000,and pays taxes of $10,000.If the taxpayer talks of being taxed at a 10 percent rate,she is referring to the

• A)Average tax rate.
• B)Marginal tax rate.
• C)Nominal tax rate.
• D)Effective tax rate.

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Definitions:

Supreme Court

The highest judicial body in the United States, possessing the ultimate appellate jurisdiction and authority to interpret the constitutionality of laws.

Exclusionary Rule

A legal principle in the United States that excludes evidence obtained in violation of a defendant's constitutional rights from being presented in court.

Police Searches

The examination or inspection by law enforcement officers of individuals, vehicles, premises, etc., for illicit material or evidence of illegal activity, usually requiring probable cause or a warrant.

Lemon Test

A three-part test created by the Supreme Court to determine when a law has the effect of establishing religion, in violation of the First Amendment.