Respuesta :
Pedro's effective marginal tax rate is 33
Effective marginal tax rate :
The effective marginal tax rate (EMTR) is the combined effect on a person's earnings of income tax and the withdrawal of means testing of state welfare benefits. The EMTR is the percentage of an extra unit of income.
- The effective tax rate relates to an individual’s or company’s overall tax rate, rather than its marginal tax rate.
- Effective tax rate is often used by investors as a profitability metric for a company.
- The reason for fluctuations in a company’s effective tax rate are even more important than the fluctuation itself.
The overall tax rate paid by the company on its earned income is referred to as the effective tax rate. To calculate the effective tax rate, simply divide the income tax expense by the earnings (or income earned) before taxes. The marginal tax rate, which is the tax rate paid on an additional dollar of income, differs from the effective tax rate. The effective tax rate, which is typically lower, is a more accurate representation of a person's or company's overall tax liability than the marginal tax rate. Remember that when comparing a marginal tax rate to an effective tax rate, the marginal tax rate refers to the highest tax bracket into which a person's or company's income falls. Individual income in the United States is taxed at rates that rise as income exceeds certain thresholds. A progressive income tax system is what this is called. Depending on how much of their income was in the top marginal tax bracket, two people with the same income may end up with very different effective tax rates.
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Pedro's effective marginal tax rate is 33.0%
What is effective marginal tax rate ?
The projected pretax rate of return less the anticipated after-tax rate of return on a new marginal investment, divided by the expected pretax rate of return, is the marginal effective tax rate on capital income. It often takes into consideration a statutory tax rate, an investment tax credit, accelerated depreciation allowances, and historical cost depreciation that depreciates over time as a function of inflation. It might only contain corporate income taxes, or it might also include local property taxes and personal taxes. It may take into consideration the alternative minimum tax, inventory accounting, nominal interest deductions, and other specific tax law features. The marginal effective tax rate is a projection that encapsulates the financial incentives offered by complex tax regulations to invest in a particular asset.
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