Which statement is correct with respect to marginal and averagetax rates under a progressive tax structure?
Multiple Choice
Generalizations cannot be made. The question can only beanswered with reference to the tax situation of a specifictaxpayer.
At very low levels of taxable income, a taxpayer's marginal andaverage tax rates will be the same.
At very high levels of taxable income, a taxpayer's marginal andaverage tax rates will be the same.
For most taxpayers, the average tax rate is larger than themarginal tax rate.
.
.
Jordan and Paul, a married couple, have taxable income of$46,625, which is taxed as follows:
| | |
| $18,650 × 10% = | $ | 1,865.00 |
| ($46,625 - $18,650) × 15% = | | 4,196.25 |
| Total tax liability | $ | 6,061.25 |
|
Their marginal tax rate is:
Multiple Choice
13%.
10%.
15%.
12.5%.
.
.
Which of the following trial courts hear tax cases?
Multiple Choice
U.S. Tax Court.
All of these.
U.S. Court of Federal Claims.
U.S. District Court.
