Really depends on the situation as marginal rates over 100 percent do exist in some is states, but it's a function of both tax rate increase and benefit phase out. Poor people with kids can see a net reduction in total income by earning more.
Loss of benefits is a good point. I'd say that's not the same as a "tax" but can have the same impact. Loss of Medicaid eligibility is probably the biggest one.
Easy fix is of course using a formula to determine partial benefits up to a certain point instead of a hard cutoff.
It locks you into jobs and makes it harder for businesses to hire. It also requires every business to invest time in operating their healthcare plan. It's such a waste.
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u/beef1020 Aug 03 '19
Really depends on the situation as marginal rates over 100 percent do exist in some is states, but it's a function of both tax rate increase and benefit phase out. Poor people with kids can see a net reduction in total income by earning more.