Here’s a CBO report finds that 15% of low to moderate income people are subject to 40-50% marginal rates and maybe another 10% are in excess of 50%. The caption implies that it isn’t considering many benefits, but the rest of the report talks about them.
The Heritage Foundation analyzed the report, making it easier to see the effect for a woman with one child in the +100% marginal tax rate, which by eyeball is about 7k->15k.
I wonder if they factored in the increased costs associated with having a job: commute, lunch, clothing, laundry, etc.I’d guess from 7k->20k, you’re basically working for no financial benefit, and that’s valuing the personal cost of the time you spend working at $0/hr.
I hadn’t realized how appallingly bad it was. Looks like going from 0k->20k produces about 4k in increased disposable income. For a 20k job, it’s an 80% effective tax rate, ignoring the issue of marginal rates.
And I thought the drug war was evil.
We’re from the government, and we’re here to help.
To be fair Obama did a lot on this issue through Obamacare. The state where you got medical coverage when you were unemployed but not if you got a low paying job was just appealing. Sorry, but if you want medical care for your child you can’t take that job.
Here’s a CBO report finds that 15% of low to moderate income people are subject to 40-50% marginal rates and maybe another 10% are in excess of 50%. The caption implies that it isn’t considering many benefits, but the rest of the report talks about them.
The Heritage Foundation analyzed the report, making it easier to see the effect for a woman with one child in the +100% marginal tax rate, which by eyeball is about 7k->15k.
http://www.heritage.org/research/reports/2013/01/effective-marginal-tax-rates-for-low-income-workers-are-high
I wonder if they factored in the increased costs associated with having a job: commute, lunch, clothing, laundry, etc.I’d guess from 7k->20k, you’re basically working for no financial benefit, and that’s valuing the personal cost of the time you spend working at $0/hr.
I hadn’t realized how appallingly bad it was. Looks like going from 0k->20k produces about 4k in increased disposable income. For a 20k job, it’s an 80% effective tax rate, ignoring the issue of marginal rates.
And I thought the drug war was evil.
We’re from the government, and we’re here to help.
To be fair Obama did a lot on this issue through Obamacare. The state where you got medical coverage when you were unemployed but not if you got a low paying job was just appealing. Sorry, but if you want medical care for your child you can’t take that job.