A Marginal Tax Rate of 47% on Taxable Income Over

question 32

Multiple Choice

A marginal tax rate of 47% on taxable income over $150 000 implies that

• A)an individual with this taxable income would pay $70 000 in income tax.
• B)the average tax rate is also 47%.
• C)the income tax payable on any dollar earned above $150 000 is 47 cents.
• D)the tax system is progressive.
• E)the tax system is horizontally equitable.

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Definitions:

Ecosystem

A dynamic complex of plant, animal, and microorganism communities and their non-living environment interacting as a functional unit.

Class

A taxonomic category made up of related orders.

Taxonomy

The science of classifying organisms into categories such as species, genera, families, etc., based on shared characteristics and genetic relationships.

Systematics

The scientific study of the diversity of organisms and their evolutionary relationships. Taxonomy is an aspect of systematics. See taxonomy.