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Revision as of 13:28, 21 September 2024
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Marginal tax rate is the rate of tax obtain a on your last (or highest) quantity of income. In the described example, the individual is being taxed with a marginal tax rate of 25% with taxable income of $45,000. And also mean one is paying 25% federal tax on her last dollars of income (more than $33,950).
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