Sentences with phrase «marginal dollar»
The term "marginal dollar" refers to an additional or incremental revenue earned from selling one more unit, attracting one extra customer, or generating an added penny in profit. Full definition
Even if you're paying a lot of taxes now, you're talking marginal dollars when you look at current contribution, and average tax rate when making withdrawals.
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But let's assume that you are in the top 1 % of income earners and your last marginal dollar does fall into the highest of tax brackets.
Based on the demographics of an economy, if marginal dollars tend to be saved versus spent, stimulus would affect the economy differently:
Note that the withdrawals may move you up through several tax brackets if a large part of your retirement earnings come from your RRSP, so the average benefit may be there even if the last few marginal dollars are in the same brackets.
The germane factor here re growth is that those with higher propensities to spend the marginal dollar are seeing fewer dollars flow their way, while those who are anything but liquidity constrained — the very wealthy — are bathing in the stuff.
Specifically, does the marginal dollar spent on higher education have a bigger impact on enrollment and completion if it is used to reduce the sticker prices students face, or instead to increase institutional expenditures that affect the experience they receive once they enroll?
The tradeoff is real: the marginal dollar invested can not be spent in two places at once.
Until that point was reached, «tax rates» on marginal dollars the mother earned could exceed 100 percent.
Each marginal dollar of revenue goes directly to the bottom line.
If you're a renter who has already maxed out his 401K, your marginal dollars are being invested at a relatively high tax rate.
A shift can happen when the marginal dollar produced by monetary policy shifts from being saved to being spent.
I'm sure they are glad to know that they are rich enough to be taxed at over 50 % of their marginal dollar.
Many economists of varying political stripes argue that — because a marginal dollar of cash income is taxable to employees, while a marginal dollar of health insurance is completely tax ‐ free — the exclusion encourages the purchase of overly generous insurance policies, and in turn leads to the over ‐ consumption of health care.