The Jones family has an average tax rate of 15 percent.Its marginal tax rate is

A) less than 15 percent.
B) 15 percent.
C) more than 15 percent.
D) impossible to finD.

Question

The Jones family has an average tax rate of 15 percent.Its marginal tax rate isA) less than 15 percent.B) 15 percent.C) more than 15 percent.D) impossible to finD.

jeremie howard · Accepted Answer

Final Answer : C, Explanation :  The marginal tax rate is the rate applied to the last dollar of income earned. It is typically higher than the average tax rate since it takes into account the progressive nature of the tax system. Therefore, the Jones family's marginal tax rate must be higher than their average tax rate of 15 percent.

The Jones family has an average tax rate of 15 percent.Its marginal tax rate is

A) less than 15 percent.
B) 15 percent.
C) more than 15 percent.
D) impossible to finD.

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