By 1981, bracket creep had pushed the average and marginal tax rates
for the typical individual in this group past the WWII-era highs.
Estimating Corporate Marginal Tax Rates
with Asymmetric Tax Treatment of Gains and Losses.
The benefit from the manufacturing deduction is determined by taking the excess of the maximum statutory tax rate over firms' marginal tax rate
, multiplied by the product of estimated taxable income and 3 percent so long as the resulting figure does not exceed 50 percent of payroll expenses.
33) Yet this historical Reagan example represents a case when in fact the significant cut in the marginal tax rate
did not translate into a reduction in the average tax rate, as the fraction of income subject to tax was increased for many taxpayers (see Bruce, 1998, p.
The higher the marginal tax rate
, the cheaper the price of leisure.
the marginal tax rate
refers to the amount of tax paid on each additional dollar of income.
The t-statistics in the taxable income column indicate that the reductions in taxable income associated with high marginal tax rates
are statistically different from zero at the 0.
Taxpayers making between $11,000 and $30,000 should not pay higher marginal tax rates
than those earning between $30,000 and $40,000.
Equation (6) shows how the conventional tax-equivalency relationship between corporates and municipals will be adapted by individual investors to reflect their idiosyncratic attitudes towards risk (manifested as U[prime]) as well as their risky marginal tax rates
In 55 of those years--40 percent of the time--higher top bracket marginal tax rates
are associated with higher growth rates--not lower ones.
It fell to $150,000,000,000 in 1987, and then to $122,000,000,000 in 1989, following the sharp reductions in marginal tax rates
embodied in the Tax Reform Act of 1986 (which passed both Houses of Congress by overwhelming majorities).
This paper investigates the effect of marginal tax rates
on the level of economic