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The marginal tax rate is the tax rate applied to:

AThe first dollar of a person's income.

BThe average dollar of a person's income.

CThe tax bracket a person falls into.

DThe last dollar of a person's income.

Answer:

D. The last dollar of a person's income.

Read Explanation:

  • The marginal tax rate is the tax rate on the next unit of income or on the last dollar earned.


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