Marginal tax
Revision as of 02:10, 28 February 2013 by Woozle (talk | contribs) (Created page with "<hide> page type::article thing type::tool </hide> ==About== A marginal tax is a tax applied only to the amount that goes over a certain limit. It is defined by bo...")
About
A marginal tax is a tax applied only to the amount that goes over a certain limit. It is defined by both a rate and the lower limit of the amount to which that rate is applied (though the lower limit often goes unmentioned in discussions of "top marginal tax rate").
Example
If we have a marginal tax rate of, say, 50% on income over $10,000, and no tax below that, then, for example --
- income $10,000 - tax is $0
- income $10,001 - tax is $0.50
- income $10,100 - tax is $50.00
- income $20,000 - tax is $5,000
...and so on.
Related
- US/tax has a lot of charts regarding marginal tax rates in the United States.
Links
Reference
- Wikipedia - redirects to wikipedia:Tax rate#Marginal
Conservapedia: no information as of 2012-02-27
