Tax liability o With respect to paying income taxes, an individuals tax liability(how much he/she owes)is based on total income The marginal tax rate is the tax rate applied to each additional dollar of Income Higher-income families pay a larger percentage of their income in taxesTax Liability • With respect to paying income taxes, an individual’s tax liability (how much he/she owes) is based on total income. • The marginal tax rate is the tax rate applied to each additional dollar of income. • Higher-income families pay a larger percentage of their income in taxes