8. Many persons with incomes below the poverty level confront very high implici t marginal tax rates.
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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.
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Related Book For
Economics Private And Public Choice
ISBN: 9780123110404
2nd Edition
Authors: James D Gwartney; Richard Stroup; A H Studenmund
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