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SSC Audit Tax Finance P-II QUESTION #6202
Question 1
The 'Marginal Tax Rate' is the:
  • Total tax paid divided by total income.
  • Tax rate applied to the first dollar earned.
  • Tax rate applied to the next dollar of income earned.✔️
  • Average of all tax brackets.
Correct Answer Explanation
It is the percentage tax on the very next dollar of taxable income [cite: 20].