Marginal Tax Rate |
| The tax rate paid on the last unit of a persons taxable income. In a graduated tax system (which most countries use), this rate will be equal to or higher than the tax rate paid on the persons entire income, since the tax rate is lower for the first portion of income than for subsequent income. In the UK the tax bands for 2007-08 tax year are 10% on the first slice of earnings, rising to 40% on the top slice. |
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