The _____ percentage paid on income taxes is called the marginal tax rate.A.fixedB.incrementalC.totalD.averageSUBMITarrow_backPREVIOUS

The correct answer to the question is A. fixed.

Explanation:

In tax terminology, the marginal tax rate refers to the rate of tax applied to an additional dollar of income. It is the percentage of tax applied to your income for each tax bracket in which you earn income. The marginal tax rate represents the amount of tax a person pays on their next dollar of income and is crucial for understanding how tax systems work, particularly in progressive taxation systems where tax rates increase as income rises. In this context, the term "fixed" can be misleading; however, the other options do not align with the economic definition of the marginal tax rate. "Incremental" refers more to the concept of additional income, while "total" and "average" tax rates are distinct concepts representing different aspects of taxation.