Meredith is a single mother who earns $20,000 per year. She receives $3,600 per year in in-kind transfers and a $600 earned income tax credit. If her earned income rises to $25,000, she will lose the tax credit and $1,900 of her in-kind transfer benefits. What is Meredith's effective marginal tax?

Question

Quizplus · Accepted Answer

The Answer of Meredith is a single mother who earns $20,000 per year. She receives $3,600 per year in in-kind transfers and a $600 earned income tax credit. If her earned income rises to $25,000, she will lose the tax credit and $1,900 of her in-kind transfer benefits. What is Meredith's effective marginal tax?

Meredith Is a Single Mother Who Earns $20,000 Per Year