marginal rate of taxation

marginal rate of taxation

the rate of TAXATION an individual would pay on an incremental unit of INCOME. For example, in a PROGRESSIVE TAXATION structure, if an individual paid tax at 30% up to a limit of £15,000, at which point the rate changed to 40%, the marginal rate of taxation on an income of £15,001 is 40%. The incremental rate of taxation on the last pound earned is 40%. See STANDARD RATE OF TAXATION, AVERAGE RATE OF TAXATION, PROPENSITY TO TAX, PROPORTIONAL TAXATION, REGRESSIVE TAXATION.
References in periodicals archive ?
In the 1960s and 1970s, the marginal rate of taxation was rather large -- sometimes as high as 90 percent -- so the tendency was to keep money abroad, particularly by trade mispricing.
This has raised the marginal rate of taxation for a person on the average industrial wage to 51% (41% income tax, 4 per cent PRSI, 4% levy, 2% income levy).
Moving forward, his successor will have to accelerate the sale of state land, 93% of which is in government hands, and further reduce the top marginal rate of taxation from the effective current rate of 60%.
Since its inception, the federal income tax has been a "progressive" tax, using a graduated rate structure so that the marginal rate of taxation increases with income - the more you earn, the greater the percentage of your income you pay in tax.
In some countries (France, Italy, New Zealand and Sweden), the ratio of the average to marginal rate of taxation is close to unity.
Oil and gas operations on the Norwegian shelf are the source of a considerable share of Hydro's pre-tax results, and are subject to a marginal rate of taxation of 78 percent.

Full browser ?