Pedro is a single father who earns $18,000 per year. He receives $3,600 per year in in-kind transfers and a $1,200 earned income tax credit. If his earned income rises to $24,000, he will lose the tax credit and $800 of his in-kind transfer benefits. What is Pedro's effective marginal tax rate?

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The Answer of Pedro is a single father who earns $18,000 per year. He receives $3,600 per year in in-kind transfers and a $1,200 earned income tax credit. If his earned income rises to $24,000, he will lose the tax credit and $800 of his in-kind transfer benefits. What is Pedro's effective marginal tax rate?

Pedro Is a Single Father Who Earns $18,000 Per Year