What is the effective tax rate

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Question: Suppose a friend comments to you, "I think welfare recipients are simply lazy spendthrifts. I have a friend who receives Temporary Assistance for Needy Families and when she was offered a part-time job, she turned it down."

What is the effective tax rate on their additional income if they were to lose $1 in benefits for each dollar of additional income?

Reference no: EM131600409

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