What is sues implicit marginal tax rate for the job


Problem

Sue is a single parent with two children. She is considering a job that pays $800 per month. She is currently drawing monthly cash benefits of $300, food stamp benefits of $100, and Medicaid benefits valued at $80. If she accepts the job, she will be liable for employment taxes of $56 per month and lose all transfer benefits. What is Sue"s implicit marginal tax rate for this job?

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Microeconomics: What is sues implicit marginal tax rate for the job
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