This provides a way for "lower than marginal tax" rates to be applied.

Whereas that same $10,000 might lose $4,600 to taxes if the income were attributed to an individual at the highest marginal tax rate.

This was proposed to be implemented by a 100% marginal tax on all income over $40,000 (after-tax income of $25,000).

However, the policy was criticized and campaigners later had a "tax rebellion" and demanded the government reduce the top marginal taxes.

Positive economic incentive effects from reduced marginal tax rates will push out the aggregate supply curve to more than absorb demand increases without raising prices.

The solution is to, after individuals reach a certain income level, ensure that the marginal tax remains steady.

Here we have an economy with zero marginal taxes and zero transfer payments.

Public discussion of "high taxes" may refer to overall tax rates or marginal taxes.

In both studies the net disincentive effect was greater for higher-income groups, as one might expect with these paying higher marginal taxes (stronger substitution effects).

At one time one of the most aggressive in the world, the top marginal tax rate on income has been decreased over time.