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  • That is, on average, for every $1 earned, 40 cents goes to various taxes, including payroll taxes, income taxes, sales taxes, excise taxes, etc.It should not go unnoticed here that Prescott and Ohanian actually use the term marginal effective tax rate correctly---they do not confuse it with other disincentives, such as loss of federal, state or local benefits.http://online.wsj.com/arti
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