Assume That DeShawn Is a Single Parent Who Is in Poverty

question 68

Multiple Choice

Assume that DeShawn is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, DeShawn loses $35 of his food stamp benefits and $20 in his Medicaid benefits. Also, DeShawn's income is taxed at a rate of 10 percent. Then, Peter's effective marginal tax rate is

• A) 45 percent.
• B) 55 percent.
• C) 65 percent.
• D) 70 percent.

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Definitions:

A. Mitchell Palmer

U.S. Attorney General known for orchestrating the Palmer Raids during the Red Scare of 1919-1920, targeting suspected radicals and communists.

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