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I don't think so. A marginal rate is the amount you pay on the next $ of income. As our tax brackets are progressive, and with the additional income you get no more exemptions/deductions than the previous, it would seem it would have to be positive...or at least as positive as you were before, (so if the marginal increase still means you get taxable income (from child care, or earned income credit, etc.) I guess your entire effective rate would be negative.

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Q: Can a marginal tax rate ever be negative?
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What is the affect of a per unit tax on marginal cost of production?

a per unit tax directly affects the marginal cost schedule by increasing the value of each marginal cost at each value by the amount of the tax


Why do the Scandinavian countries have high taxes?

According to the OECD, Denmark (26.4 percent), Norway (19.7 percent), and Sweden (22.1 percent) all raise a high amount of tax revenue as a percent of GDP from individual income taxes and payroll taxes. This is compared to the 15 percent of GDP raised by the United States through its individual income taxes and payroll taxes for instance. In order to raise a lot of income tax revenue, income tax rates in Scandinavian countries are rather high except for that of Norway. Denmark's top marginal effective income tax rate is 60.4 percent. Sweden's is 56.4 percent. Norway's top marginal tax rate is 39 percent. Scandinavian income taxes raise a lot of revenue because they are actually considered flat. In other words, they tax most people at high rates, not just the high-income taxpayers. The top marginal tax rate of 60 percent in Denmark applies to all income over 1.2 times the average income in Denmark. Sweden and Norway have similarly flat income tax systems. Sweden's top marginal tax rate of 56.9 percent applies to all income over 1.5 times the average income in Sweden. Norway's top marginal tax rate of 39 percent applies to all income over 1.6 times the average Norwegian income.


What is after cost of debt?

The after-tax cost of debt is predominantly based on marginal pretax costs, as well as marginal or statutory tax rates.


What do you do when marginal costs exceeds marginal revenue?

When MC>MR, then there is an overallocation of resources. This usually happens with a negative externality. The government tries to taxes these businesses so that they will produce less. Therefore, a way to fix overallocation of resources is to tax that company and reduce their output.


Why is marginal cost unaffected by lump sum tax?

Marginal cost is the cost to the firm of producing one more unit of output - it is affected by the same factors that affect variable costs. A lump sum tax does not affect this relationship whereas a tax on the marginal unit produced will; such as an ad valorem tax. If a lump sum tax is imposed on a producer this will NOT affect his profit maximising decisions as his output decisions are always based on the margin. He will set MC = MR as per normal but will endure lower profits as the AC has increased. It is important to understand the distinction between marginal and average in this case and the consequences that marginal tax has on behaviour of the firm.

Related questions

If you win the Ohio lottery what percent do you have to pay?

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After you have completed your income tax return correctly you will know what your marginal tax rate is. The taxable amount from the 1099-R will be subject to income tax at that marginal tax rate.


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Marginal Tax Rate Calculator?

Marginal Tax Rate Calculator Knowing your income tax rate can help you calculate your tax liability for unexpected income, retirement planning or investment income. This calculator helps you estimate your average tax rate, your current tax bracket, and your marginal tax rate for the 2010 tax year. Please note that this calculator uses the 2010 preliminary tax tables subject to change by the IRS.


In making financial decisions the relevant tax rate is the?

The relevant tax rate is the marginal tax rate in making finicial decisions.


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What ever your marginal tax rate is after your income tax return is completed correctly for the year. Could from 10% to the Maximum 35% tax bracket amount.


What is the income tax on 16000?

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What was the highest tax rate in US history?

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What is the name of the tax rate at which additional income is taxed?

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If you sell a painting how much tax do you pay?

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Does the after tax cost of a deductible expense increase or decrease as the taxpayer's marginal income tax rate increases?

Decrease The higher the marginal rate, the more a person or firm is shielded from expenses.