question 7 of 10\nthe incremental percentage paid on income taxes is called the \n\na. average tax rate\nb…

question 7 of 10\nthe incremental percentage paid on income taxes is called the \n\na. average tax rate\nb. flat tax rate\nc. regressive tax rate\nd. marginal tax rate

question 7 of 10\nthe incremental percentage paid on income taxes is called the \n\na. average tax rate\nb. flat tax rate\nc. regressive tax rate\nd. marginal tax rate

Answer

Brief Explanations:

  • Average tax rate: It is the total tax paid divided by total taxable income. It is not about the incremental percentage.
  • Flat tax rate: A single rate applied to all income levels. No incremental aspect here.
  • Regressive tax rate: A rate where the tax burden decreases as income increases. Not related to incremental percentage.
  • Marginal tax rate: Defined as the incremental percentage of tax paid on additional income.

Answer:

D. marginal tax rate