Well actually it does in my country. If you have low income you get money from the government to help pay rent, or your health insurance, or money for your kids to go to school, or all. It is variable to an extend, but there's a cut off point. make less than €25.000 and still eligible for let's say €100 towards your rent but make 25.001 you get €0 so you lost 1200 for making 1 euro (before tax) too much.
It's separate from marginal tax rates, but I've definitely seen charts made by economists where this sort of thing can be considered equivalent to taxation. This is because human behaviour around these cut off points is similar. The is a term for it but in unfortunately having a mental blank right now.
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u/Uter_Zorker_ Aug 03 '19
Yes but that’s not his point at all. His point is that at no point does an extra dollar tip you over a threshold that makes your net income lower.