When you are making a financial decision,the most relevant tax rate is the ________ rate when the tax rate schedule is progressive.
A)average
B)fixed
C)marginal
D)total
E)variable

Question

Quizplus · Accepted Answer

When the tax rate schedule is progressive, the tax rate increases as income increases. Therefore, the marginal tax rate is the rate applicable to the next dollar of income earned. This rate is the most relevant because it indicates the tax impact on any additional income earned or any incremental change in income.

When You Are Making a Financial Decision,the Most Relevant Tax