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(Your marginal rate is the rate you pay on each additional dollar of income you earn).
He went on: "For providing incentives to work, the marginal rate is what counts.
And this higher marginal rate is more likely to hit families in which mothers work part-time.
The top marginal rate is 35 percent, after all, and the marginal rate on a couple with $70,000 in taxable income is 25 percent.
The reasons it isn't bigger is that while the threshold for the top marginal rate is moving up to 450K, the thresholds for other things — phaseout of deductions, higher taxes on dividends and capital gains — aren't going up, they're staying at 250K.
Your marginal rate is the penalty you pay for earning an incremental dollar of income.
Similar(44)
When I arrived in the United States Senate, the highest marginal rate was 72percentt.
In the 1980's, the top marginal rate was cut to 28percentt from 70percentt.
By the time the war ended, the top marginal rate was 94percentt.
In 1980, the top marginal rate was 70 percent for families making more than $215,400 — about $587,000 in current dollars.
At the end of World War II, the lowest marginal rate was 23 percent and the maximum rate was 94 percent; the exemption for a single individual was only $500.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com