Question: Which statement is correct with respect to marginal and average tax rates under a progressive tax structure?Multiple ChoiceAt very high levels of taxable income, a
Which statement is correct with respect to marginal and average tax rates under a progressive tax structure?Multiple ChoiceAt very high levels of taxable income, a taxpayer's marginal and average tax rates will be the same. At very low 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. Generalizations cannot be made. The question can only be answered with reference to the tax situation of a specific taxpayer.
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