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In variable-pay programs,employee compensation declines in line with reduced performance.
Average Tax Rate
The total tax paid divided by the total income, often expressed as a percentage.
Total Income
The sum of all earnings or revenue generated by an individual or organization, including wages, profits, rents, and investment income.
Total Taxes
The sum of all taxes levied by various governmental entities on individuals or businesses, including income, sales, property, and other taxes.
Average Tax Rate
The proportion of total income that is paid as tax.
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