Question

Typically, the average tax rate for a person is ________ his or her marginal tax rate, because the marginal tax rate applies to ________.

Answer 1

1. below;

2. the last dollars taxed but not to all income

Step-by-step explanation:

Given that the average tax rate for individuals is the percentage of income that individuals pay in taxes. While the marginal tax rate applies to a certain part of taxable income, which is usually the last dollar of the income

Hence, Typically, the average tax rate for a person is BELOW his or her marginal tax rate, because the marginal tax rate applies to THE LAST DOLLARS TAXED BUT NOT TO ALL INCOME.