author

Elias Ilin

Federal Reserve Bank of Atlanta

As a result of disaggregated welfare programs, each with their own eligibility criteria and incentives, one in four low-wage workers face marginal tax rates above 70%, creating ‘poverty traps’ that disincentivize earning further income, lest they lose more in benefits than they gain in wages.
Marginal Net Taxation of Americans' Labor Supply
Basic Income
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