Which of the Following Statements Is False with Respect to Marginal

question 55

Multiple Choice

Which of the following statements is false with respect to marginal and average tax rates?

• A)For most taxpayers,the average rate is larger than the marginal rate.
• B)For taxable income greater than the lowest tax bracket,the average rate is always greater than the lowest marginal rate and less than the highest marginal rate.
• C)The average rate is the percentage of tax paid on the entire amount of taxable income.
• D)The marginal rate is the proportion of tax paid on the next dollar of taxable income.