The federal taxes owed by a taxpayer depend
A)only upon the marginal tax rate on the taxpayer's first $25,000 of income.
B)only upon the marginal tax rate on the taxpayer's last $10,000 of income.
C)upon all the marginal tax rates up to the taxpayer's overall level of income.
D)upon all the marginal tax rates,including those for income levels that exceed the taxpayer's overall level of income.

Question

Quizplus · Accepted Answer

Federal taxes owed by a taxpayer depend on all the marginal tax rates up to the taxpayer's overall level of income. The tax system is progressive, which means that as income increases, the marginal tax rate also increases. Therefore, all income levels up to the taxpayer's overall level of income affect the federal taxes owed.

The Federal Taxes Owed by a Taxpayer Depend