MPT

• What does marginal propensity to tax (MPT) refer to?

  The increase in taxation following an increase in income
• How does MPT relate to income changes?

  MPT measures tax increase with income increase
• If a person's income increases, what happens to their MPT?

  MPT increases as income increases
• What is the significance of understanding MPT in economics?

  It helps analyze tax policy effects on income