Tax Incidence: General Remarks Can define progressive(and regressive) taxes in a number of ways Can compute in terms of Average tax rate(ratio of total taxes total income)or Marginal tax rate( tax rate on last dollar of income)9 Tax Incidence: General Remarks • Can define progressive (and regressive) taxes in a number of ways. • Can compute in terms of – Average tax rate (ratio of total taxes total income) or – Marginal tax rate (tax rate on last dollar of income)