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The Marlowe household is comparing a 10,000 deduction to a 10,000 tax credit. Marlowe is currently in the 24% marginal tax bracket.
What is the difference in the 'economic value' of these two options?
- The credit and the deduction are equivalent because the amounts are identical.
- The credit is worth 7,600 more than the deduction.
- The difference is 3,700 based on the top 2026 marginal tax rate.
- The deduction is worth 2,400 more than the credit.
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