Junko is a single mother who earns $17,000 per year. She receives $3,000 per year in in-kind transfers and a $1,000 earned income tax credit. If her earned income rises to $22,000, she will lose the tax credit and $500 of her in-kind transfer benefits. What is Junko's effective marginal tax?

Answer rating: 100% (QA)

Answer To calculate Junkos effective marginal tax rate we need to consider the change in he... View the full answer