Offshore tax evasion is crime in several onshore countries and includes jail time so it ought to avoided. On another hand, offshore tax planning is Not really a huge crime. Marginal tax rate may be the rate of tax obtain a on your last (or highest) amount of income. In the described example, the individual is being taxed with a marginal tax rate of 25% with taxable income of $45,000. This might mean she is paying 25% federal tax on her last dollars of income (more than $33,950). ...