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Marginal tax rate |
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Marginal tax rateThe additional tax which someone pays on each £1 increase of his or her taxable income. In the UK the tax bands for 2003-2004 tax year are:10 per cent on the first slice of earnings22 per cent on next slice40 per cent on top sliceUnder the 'progressive' tax system, once someone's earnings take him into the top tax bracket, any extra earnings will be taxed at the top rate. So someone who is in the 40 per cent bracket has a marginal tax rate of 40 per cent.Marginal tax rateThe tax rate that would have to be paid on any additional dollars of taxable income earned.Marginal tax rate Similar MatchesMarginal utilityMarginal utilityThe change in total satisfaction as a result of consuming one additional unit of a specific good or service. Marginal rate of substitutionMarginal rate of substitutionIn a production function or a utility function, the ratio at which one argument (input) substitutes for another along an isoquant or indifference curve. Marginal efficiency of capitalMarginal efficiency of capitalThe percentage yield earned on an additional unit of capital. Marginal propensity to importMarginal propensity to importThe fraction of a change in income (or perhaps disposable income) spent on imports. Contrasts with average propensity to import. Marginal propensity to consumeMarginal propensity to consumeThe fraction of a change in income (or perhaps disposable income) spent on consumption. Contrasts with average propensity to consume. Further SuggestionsMarginalMarginal propensity Marginal propensity to save Value marginal product Marginal cost Marginal revenue product Marginal product Marginal rate of transformation Marginal value product Marginal revenue |
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