Examlex
The two types of operational definitions are:
Average Tax Rate
The ratio of total taxes paid to total income, representing the overall percentage of income that is taken by taxes.
Marginal Tax Rate
The rate at which the last dollar of a taxpayer's income is taxed, indicating how much of any additional income will be taken in taxes.
Marginal Tax Rate
The percentage of tax applied to the last dollar earned, reflecting the rate at which each additional dollar of income is taxed.
Additional Income
Earnings received beyond the regular pay or salary, such as bonuses or overtime pay.
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