The Coolidge family has taxable income of $165,000 in 2012. They live in a state in which income over $100,000 is taxed at 14%. What is their total effective (marginal) tax rate? Assume 28% federal tax rate. Round the answer to 2 decimal places.
Total effective tax rate = federal tax rate + state tax rate *(1 - federal tax rate)
= 0.28+0.14*(1-0.28)
= 38.08%
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