Assume that Jill is a single parent who is in poverty. She receives food stamps and Medicaid. For every $100 that she earns, Jill loses $20 of her food stamp benefits and $15 in her Medicaid benefits. Jill's implicit marginal tax rate from these two programs is

Question

Quizplus · Accepted Answer

Jill loses $20 in food stamps and $15 in Medicaid benefits for every $100 earned, totaling $35. This means her implicit marginal tax rate is 35 percent.

Assume That Jill Is a Single Parent Who Is in Poverty