Tuesday, December 03, 2013

The Trouble With Means Testing

We don't talk enough about how the working poor can face incredibly high effective marginal tax rates due to the fact that various credits and benefits are taken away if you manage to earn more money. We know that raising the tax rate on million-earners by one percentage point will cause them to go Galt and never create another jaayyyyaab again, but it's the working poor who really face high marginal rates.