=+the first £700 that Tamara makes, she pays no tax. That is, for the first 20 hours she works, her net wage—what she ‘takes home after taxes—is $20 per hour. On all income above $400, Tamara pays a 75% tax. That is, for all hours above the first 20 hours, her net wage rate is only 8 per hour. Tamara decides to work 30 hours. Her