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Marginal Tax Rates
The rate of tax applied to your last dollar of income, representing what percentage of any additional earned income will be taken as tax.
Average Tax Rates
The ratio of the total amount of taxes paid to the total income, providing a measure of the tax burden.
Taxable Income
The portion of an individual’s or entity’s income that is subject to income tax after all deductions and exemptions.
Progressive
A system or policy where the level of contribution or effort increases with some measure of capacity, such as a progressive tax system where higher income earns pay a higher rate.
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Q133: Knowledge in a specific area helps organize