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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.
What else can I help you with?
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.
Who are the Marginal earners of tax?
Marginal earners of tax refer to individuals or households whose income falls within the range that is subject to taxation at the highest marginal tax rate applicable to their earnings. They typically earn just enough to be taxed but may not have significant disposable income after fulfilling tax obligations and necessary living expenses. This group can include low to middle-income earners, who may experience a higher tax burden relative to their income, thus affecting their overall financial well-being.
If a firm's marginal tax rate is increased this would other things held constant lower the cost of debt used to calculate its WACC True or False?
True. An increase in a firm's marginal tax rate reduces the after-tax cost of debt because interest expenses are tax-deductible. This means that the effective cost of borrowing becomes lower for the firm, which, when calculating the Weighted Average Cost of Capital (WACC), results in a decreased cost of debt, assuming all other factors remain constant.
If you win the Ohio lottery what percent do you have to pay?
What ever your marginal tax rates are. For 2009 and 2010 from 10% to the 35% maximum marginal tax rate for the federal income tax return.
What is the tax percentage for 1099?
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.
What is the relevant tax rate for investment decisions?
Marginal Rate
What is the federal tax rate on withdrawal of all 401k funds?
What ever your marginal rate will after you have completed you income tax return correctly. Could be any where from the -0- % to the maximum 35% tax bracket amount.
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.
How much tax do you pay on interest?
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 was the highest tax rate in US history?
The top marginal tax rate was reduced to 58% in 1922, to 25% in 1925, and finally to 24% in 1929. In 1932 the top marginal tax rate was increased to 63% during the Great Depression and steadily increased, reaching 94% (on all income over $200,000) in 1945. During World War II, Congress introduced payroll withholding and quarterly tax payments. Top marginal tax rates stayed near or above 90% until 1964 when the top marginal tax rate was lowered to 70%. The top marginal tax rate was lowered to 50% in 1982 and eventually to 28% in 1988. However, in the intervening years Congress subsequently increased the top marginal tax rate to 35% (the top marginal tax rate as of 2007).
In making financial decisions the relevant tax rate is the?
The relevant tax rate is the marginal tax rate in making finicial decisions.
What is the income tax on 16000?
Multiply the taxable amount of 16000 by your marginal tax rate if your marginal tax rate is 10% then the income tax amount would be 1600. !6000 X .15 = 2500
What is the name of the tax rate at which additional income is taxed?
Your marginal rate as compared to your effective rate.
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.
What are the tax percent on a dallor?
After your income tax return is completed correctly you will know what your marginal tax rate was for your taxable income for the year. The federal income tax rate on your taxable income can be from -0- percent to the maximum 35% marginal tax rate depending on your filing status and your total worldwide taxable income.
