Marginal Tax Rate

Marginal Tax Rate

See Also:
Tax Brackets
Prepaid Income Tax
Flat Tax Rates
Deferred Income Tax
Cash Flow After Tax

Marginal Tax Rate

The marginal tax rate is the tax rate that applies to an incremental dollar of a company’s pre-tax income. It is the tax rate paid on the last dollar earned.
A company may incur a certain tax rate on income up to a certain amount. Beyond that amount the tax rate may change to the tax rate that is marginal, which then applies to incremental income earned beyond that point.
Because it applies to incremental income, this rate is the most important tax rate in business decision making.
In the U.S., the marginal tax rate increases as a company’s income increases. So the more a company earns, the higher its tax rate is. Some economists think that this discourages productivity in business.
Marginal Tax Rate

ARTICLES YOU MIGHT LIKE

IN CRISIS? GET A STRATEGIC CFO! – CEO Blindspots Podcast

Friend of the firm, Birgit Kamps, recently had Strategic CFO President, Dan Corredor, as a guest on her podcast, CEO Blindspots. CEO BLINDSPOTS HOST: Birgit Kamps. She was speaking five languages by the age of 10, and lived in five countries with her Dutch parents prior to becoming an American citizen. Birgit’s professional experience includes starting

Read More »

SHRM calls ICHRA the 401K for Group Health Benefits

Fed-up with group health insurance? ICHRA is the new way to offer great health benefits and avoid ACA penalties, SHRM calls it the 401K for group health benefits.  In 2020 the Department of Labor, HHS and IRS changed the rules for employer health benefits. They changed the Affordable Care Act mandates and penalties for every

Read More »

How to Improve Your Resume

The concept of resumes might seem difficult to grasp at times. After all, you’re set with the task of conveying all of your life’s accomplishments and skills in a single sheet of paper. Creating a good resume is an essential skill necessary to be successful in the workforce. A good resume can be the difference between getting your dream job or

Read More »

JOIN OUR NEXT SERIES

Financial Leadership Workshop

MARCH 28TH-31ST 2022

THE ART OF THE CFO®

Financial Leadership Workshop

Days
Hours
Min

September 12-15th 2022

Days
Hours
Min
SHARE THIS ARTICLE

JOIN THE NEXT STRATEGIC CFO™ WORKSHOP SERIES

Strategic CFO™ Financial Leadership Workshop
The Art Of The CFO®

Days
Hours
Min

December 5-8th, 2022