in progressive tax, the increasing tax rate paid on income as it rises; tax rates levied on different levels of income
For the extra $900 of income on that 1099, the phase out of primarily the EITC put my marginal rate at about 102%.
Along with any book sales, that would be his only income taxed at the 35 percent marginal rate.
The marginal rate of taxation applies much more heavily on the secondary wage.
The proposal is to raise the marginal rate on every dollar earned above $1 million per year in households that reach that level.
The Bush tax cuts brought down the marginal rate for the highest earners from 39.6 percent to 35 percent.