In the simple land of Rabushka, there is only one tax rate, 20 percent, but workers don't have to pay tax on the first $10,000 of their income. For every dollar they earn above $10,000, they pay 20 cents to the Lord High Mayor of Rabushka. What is the marginal tax rate in Rabushka for a worker whose income is $1 million?
1. 20%
2. 19.8%
3. 22%
4. 16%