Tag: ‘wage and salary income’

Marginal Tax Rates Matter More than Average Tax Rates

By :: October 9th, 2012

Each year when I complete my federal income tax return, Turbotax tells me my average tax rate—how much tax I owe measured as a percentage of my total income. But it would be better if I learned my marginal tax rate or MTR—the percentage tax that I would pay on an additional dollar of income. […]

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