Investor Glossary-marginal tax rateInvestor Glossary-marginal tax rateInvestor Glossary-marginal tax rateInvestor Glossary-marginal tax rateInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Marginal Tax Rate

The HTML to link to this page
 

The marginal tax rate is rate of tax applicable to each additional dollar of income. In other terms, the marginal tax rate indicates the changes in tax rates as they relate to the changes in taxable income. The marginal tax rate can be expressed mathematically in the following way: marginal tax rate = Δ(tax owed)/Δ(taxable income). Thus, for example, a marginal tax rate of zero is indicative of a flat taxation model. When referring to a marginal tax rate, economists typically consider a combination of federal, state, and local taxes. As such, marginal tax rate applies to all tax brackets. An increased marginal tax rate is often debated. Critics of progressive marginal tax rate argue that it leads to an infinitely augmenting tax rate and discourages investment incentives.



Rate this marginal tax rate definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, minority interest, VIX, class C shares, 1035 exchange, real GDP, 401a, labor relations, per diem, required rate of return, reverse mortgage, stock market close, inflation, LIBOR, margin rate, 144a, debt service coverage, diluted share, in escrow, dividends payable, retained earnings, option premium, Key Rate Duration, quality assurance, FTSE, liquidity ratio, irrevocable trust, command economy, deferred revenue, wholly-owned subsidiary, cancelled check, covered put, average price per share, APR, Zero Cost Collar, 1031 exchange, current ratio, FICO score, balance sheet, annual return, stock split, deferred tax, ex-dividend date, phantom income, ex-dividend, open position, risk management, limit order


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use