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Taxes

Marginal rate of tax

As we delve into the intricacies of finance, one must understand the concept of tax rates. Specifically, the top slice or bracket of a taxpayer's income is subject to a progressive tax rate, which applies to all taxable income. This means that as income increases, the tax rate also increases. It is important to keep in mind that this only applies to the top portion of one's income, not the entire amount. Let's explore this idea further.
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