Since deductions and credits (and rates) seem to have an uneven effect, the rate any taxpayer pays on say the first $1 is not the same on the first $1 after $10 mill. The first $ is really not taxed at all, because the benefits, deduction are available that other one may be taxed fully, as all benefits and tax reductions have been expended. That is the marginal rate - the amount you pay on the NEXT $ you earn. The effective rate is the percent derived by taking the total tax actually paid divivded by the total income actually made. Which once again, because of different rates at different income levels, the effects of deductions, credits, maybe Net operating Loss carryforwards, etc., is really an average of everything and not a stated rate. That is the effective rate - the rate the taaxpayer actually pays, all things considered.
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