Re:Pooling and Sharing of wealth make everyone's wealth grow...
by MattPalmer1086 on Saturday September 02, 2023 @05:54AM
(#37360021)
Marginal rate is a rate for a band of income. Your effective rate is what you actually pay as a percentage of your total income.
So if you have a marginal rate of 50% but it only kicks in when you earn over a certain amount, you will be paying less than 50% overall (your effective rate).
So if you have a marginal rate of 50% but it only kicks in when you earn over a certain amount, you will be paying less than 50% overall (your effective rate).