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?
How should changes in tax progressivity be measured? Q.How should changes in tax progressivity be measured? A.A broad definition of tax progressivity, that tax burdens rise with household income, masks a host of ambiguities in measuring the effect of a tax change. In our distribution tables, TPC emphasizes the percentage change in after-tax income because it is the most reliable measure of the progressivity of such a change. Read more about How should changes in tax progressivity be measured?
Are federal taxes progressive? Q.Are federal taxes progressive? A.Overall, yes. But that’s not the case for each tax. Read more about Are federal taxes progressive?