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Taxes

Effective tax rate

As we explore the realm of taxation, it is important to understand the concept of marginal tax rate. This refers to the rate at which an individual's tax liability would be taxed if it were subject to a flat rate, rather than a progressive one. It is calculated by determining the percentage of a person's total taxable income that is owed in taxes. This fundamental understanding of marginal tax rate is crucial in comprehending the complexities of tax systems.
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