Refer to Figure 34.3.The implied marginal tax rate is

Name: Refer to Figure 34.3.The implied marginal tax rate is
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The implied marginal tax rate is the tax rate associated with the last dollar of income earned. In this figure, the tax rate increases as income increases and reaches 100 percent at an income level of $40,000. This means that any additional dollar earned beyond $40,000 will be fully taxed, resulting in a marginal tax rate of 100 percent.