Which statement is correct with respect to marginal and average tax rates under a progressive tax structure?

Multiple Choice

Generalizations cannot be made. The question can only be answered with reference to the tax situation of a specific taxpayer.

At very low levels of taxable income, a taxpayer's marginal and average tax rates will be the same.

At very high levels of taxable income, a taxpayer's marginal and average tax rates will be the same.

For most taxpayers, the average tax rate is larger than the marginal tax rate.

.

.

Jordan and Paul, a married couple, have taxable income of $46,625, which is taxed as follows:

$18,650 10% =	$	1,865.00
($46,625 - $18,650) 15% =		4,196.25
Total tax liability	$	6,061.25

Their marginal tax rate is:

Multiple Choice

13%.

10%.

15%.

12.5%.

.

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Which of the following trial courts hear tax cases?

Multiple Choice

U.S. Tax Court.

All of these.

U.S. Court of Federal Claims.

U.S. District Court.