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If MrPerot Faces a 90 Percent Marginal Tax Rate

Question 75

Multiple Choice

If Mr.Perot faces a 90 percent marginal tax rate,


A) his average tax rate must be falling.
B) the next dollar he earns nets him 90 cents.
C) his total tax payments equal 90 percent of his income.
D) he has a strong incentive to work harder.
E) he has a strong incentive to work less.

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