Marginal Tax Rate

What Does Marginal Tax Rate Mean?
The amount of tax paid on an additional dollar of income. As income rises, so does the tax rate.

Investopedia explains Marginal Tax Rate
Many believe this discourages business investment by removing the incentive to work harder.

Related Terms

Income
Income Spreading
Income Tax
Internal Revenue Service - IRS
Short-Term Gain
Tax Bracket
Tax Shield
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