What is the difference between marginal and average tax rates? Q.What is the difference between marginal and average tax rates? A.Average tax rates measure tax burden, while marginal tax rates measure the impact of taxes on incentives to earn, save, invest, or spend an additional dollar. Read more about What is the difference between marginal and average tax rates?
What would and would not be taxed under a broad-based income tax? Q.What would and would not be taxed under a broad-based income tax? A.Generally, all forms of income, but there are as many options as there are proposals. Read more about What would and would not be taxed under a broad-based income tax?
How do phaseouts of tax provisions affect taxpayers? Q.How do phaseouts of tax provisions affect taxpayers? A.Many preferences in the tax code phase out for high-income taxpayers—their value falls as income rises. Phaseouts target tax benefits to low- and middle-income households while limiting revenue costs, but raise marginal tax rates for taxpayers in the phase-out range. Read more about How do phaseouts of tax provisions affect taxpayers?