Question

Suppose you graduate with an accounting degree and then become a certified public accountant You work, for a big firm but are offered a chance to prepare tax documents for your city government as an independent contractor The city offers to pay you a consulting fee of $10,000 When deciding whether to accept the additional work the most important tax factor in your decision is a.the gross amount of the payment b.your marginal tax rate c.your new average tax rate d.your current tax bracket e.which political party controls the city government A U S federal government budg

Answer 1

b. your marginal tax rate

Step-by-step explanation:

When deciding whether to accept the additional work the most important tax factor in your decision is your marginal tax rate.

The marginal tax rate is the percentage of tax on an individual's income for each tax bracket above a pre-defined cash-flow threshold.

Basically, marginal rates measure the degree to which an individual would be willing to accept more risk in additional work or investment portfolios.