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Edward is severely beaten by his alcoholic father on several occasions.Before long, Edward begins to shake whenever his father approaches.In this situation, Edward's father is:
Marginal Tax Rate
The rate at which the last dollar of income is taxed.
Lump-Sum Tax Rate
A tax that is a fixed amount, no matter the change in circumstance of the taxed entity. This creates a situation where the tax burden falls more heavily on those with lower income or profit.
Marginal Tax Rate
The amount of tax applied to an additional dollar of income, often used in progressive tax systems.
Average Tax Rate
The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that is paid in taxes.
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