Leave it to lawyers and the government to struggle to give a straight factor to this mystery! Unfortunately, in order to be permitted to wipe out a tax debt, the numbers of five criteria that must be satisfied. Marginal tax rate is the rate of tax not only do you on your last (or highest) amount of income. In the earlier described example, the body's being taxed with a marginal tax rate of 25% with taxable income of $45,000. As well as mean they're paying 25% federal tax on her last dollars o...