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How Taxes And Transfers Affect The Work Incentives Of People With Low And Moderate Income

Friday, March 24, 2017 3:33
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(Before It's News)

from the Congressional Budget Office

– this post authored by Shannon Mok

When workers’ earnings rise but their after-tax income rises less – because of increases in their income and payroll taxes or declines in their benefits from government programs – their incentive to work typically declines. The percentage of an additional dollar of a person’s earnings that is unavailable for such reasons is called the marginal tax rate.

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