The nominal tax rate is
Multiple Choice
Lower than the effective tax rate.
Taxes paid divided by total economic income.
Taxes paid divided by taxable income.
Equal to the marginal tax rate.
Taxes paid divided by total economic income.
Explanation:
Nominal tax rate = taxes / total income * 100
The nominal tax rate is Multiple Choice Lower than the effective tax rate. Taxes paid divided...
The tax rate is equal to total taxes divided by total taxable income. A. deductible residual total average marginal The cash flow of a firm which is available for distribution to the firm's creditors ang
Which of the following is true about the marginal tax rate? The marginal tax rate is calculated as the total amount of taxes paid divided by the taxable income. The marginal tax rate is the tax rate for the last dollar of income. The marginal tax rate is the tax rate applied to every dollar of income. The marginal tax rate always increases with a corporation's income.
A firm's average tax rate is based on the total tax due divided by the taxable income. This rate is normally greater than the firm's marginal tax rate. true or false
Assume Juno’s paid $368,060 in taxes on taxable income of $1,673,000 last year. This year, the firm paid $401,545 in taxes on taxable income of $1,818,586. Assume the tax rates were the same for both years. What are the marginal and average tax rates for this year? Multiple Choice 22 percent; 21 percent 21 percent; 21 percent 23 percent; 22 percent 22 percent; 22 percent 23 percent; 21 percent
1. An income tax is progressive if Multiple Choice lower-income households pay a larger share of their income in taxes than higher-income households. higher-income households pay a larger share of their income in taxes than lower-income households. most of the tax revenue is used to benefit lower-income households. most of the tax revenue is used to benefit higher-income households. 2. Among the reasons for high CEO pay are all of the following EXCEPT Multiple Choice the people who are capable...
Franklin Corporation just paid taxes of $152,000 on taxable income of $512,000. The marginal tax rate is 35% for the company. What is the average tax rate for the Franklin Corporation?
Which of the following statements regarding interest tax shields is correct? Multiple Choice Taxes are reduced by the amount of the interest on a firm’s debt. Taxes are reduced by the amount of a firm’s interest-bearing debt. Taxable income is reduced by the amount of the interest on a firm’s debt. Taxable income is reduced by the amount of a firm’s interest-bearing debt.
Calculation of Tax Liability, Marginal, Average and Effective Tax Rates (LO. 1) Susan is single with a gross income of $120,000 and a taxable income of $98,000. In calculating gross income, she properly excluded $10,000 of tax-exempt interest income. paid on the next dollar of income v The marginal tax rate is the rate of tax that would a. The average tax rate is the rate of tax paid on the total tax base v b. The effective tax rate...
If a tax system has no deductions, exemptions, or other loopholes, then the effective tax rate will be Greater than the nominal tax rate. Equal to the nominal tax rate. Less than the nominal tax rate. Equal to the vertical tax rate.
please add citations if possible! Why are corporate taxes lower than individual income taxes? Present an argument for corporate taxes to be higher or equal to the highest individual income tax rates. Present an argument for corporate taxes to be lower than the average individual income tax rate?