8. Many persons with incomes below the poverty level confront very high implici t marginal tax rates.

Question:

8. Many persons with incomes below the poverty level confront very high implici t marginal tax rates. Since their transfer benefits decline as their income rises, additional earnings often cause the net income of the poor to rise by only a small amount. This system clearly diminishes the incentive of the poor to earn and escape their dependency on welfare.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

Question Posted: