What is the difference between marginal and average tax rates? Under w

What is the difference between marginal and average tax rates? Under what marginal and average tax rate conditions would an income tax be progressive?

What will be an ideal response?

 

ANSWER

Marginal tax rates are the percentage of any additional income that will have to be paid in tax while average tax rates are the total amount of tax divided by income. If marginal tax rates are higher than average tax rates, the income tax is progressive.

 

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