Under a flat tax structure, where the same tax rate applies to all income levels 24...

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Under a flat tax structure, where the same tax rate applies to all income levels 24 . the marginal tax rate is greater than the average tax rate the marginal tax rate is irrelevant the marginal tax rate is equal to the average tax rate the marginal tax rate is less than the average tax rate

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Answer 1

Answer #1

Under the flat tax structure,

The marginal tax rate is equal to the average tax rate.

Since the same rate applies to all the income levels, the average tax rate and marginal tax rate will always be the same.

Average tax rate is calculated by dividing total tax by total income. And marginal tax rate is calculated by dividing additional tax by average income. Since flat rate is there, both will be same

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Answer 2

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