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The most important tax rate for determining an individual's incentive to work is the margnal tax rate.

What is a tax?

Tax refers to the compulsory financial charge or levies on an individual or entities by governments in almost every country of the world.

Tax is a tariff or duty that is the revenue of the government which is levied by it on the income of the workers, business profits, and also added to goods and sevices.

A tax rate is the rate or a percentage at which an individual or corporation is taxed. Basically, there are two types direct taxes and indirect taxes.

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Universidad de Mexico