Marginal tax rate vs Average tax rate
Not what you're looking for?
For someone planning to start a new business, is the average or the marginal tax rate more relevant?
Purchase this Solution
Solution Summary
The 240 word solution gives examples of the concept of marginal versus average tax rate including conclusions about what is appropriate from a planning perspective.
Solution Preview
For planning purposes, the marginal rate is more appropriate because it is the rate that was applied to the last dollar earned. In making projections of net income for a business, growth would normally be built into the projections and a conservative approach would always compute tax at a marginal rate for the next dollar earned.
The marginal rate is ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.