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Greg spends all of his income on sandwiches and shoes. Suppose that the government introduces an ad valorem tax of 60% imposed on both sandwiches

Greg spends all of his income on sandwiches and shoes. Suppose that the government introduces an ad valorem tax of 60% imposed on both sandwiches and shoes. What income tax rate is equivalent to this commodity tax?

The answer is 37.5%, please explain why is it 37.5%?

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