What is the difference between marginal and average tax rate?
Marginal tax rate measures the change in total tax divided by the change in income while average tax rate is measured by the total tax paid divided by total taxable income
Average tax rate measures the change in total tax divided by the change in income while marginal tax rate is measured by the total tax paid divided by total taxable income
Marginal tax rate measures the change in total tax multiplied by the change in income while average tax rate is measured by the total tax paid multiplied by total taxable income
Average tax rate measures the change in total tax multiplied by the change in income while marginal tax rate is measured by the total tax paid multiplied by total taxable incomei