### Question
What does adjusted highest section 1 rate mean?


### Answer
**Adjusted highest section 1 rate** has the following meaning in *26 U.S.C. § 7519*:

> the highest rate of tax in effect under section 1 as of the end of the base year plus 1 percentage point (or, in the case of applicable election years beginning in 1987, 36 percent)

#### Citation:
  - *26 U.S.C. § 7519*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 77-MISCELLANEOUS PROVISIONS**

