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Tax burden equal to 70% rate crushes Americans unable to pay

Steve Matthews  |  October 16, 2020

By Steve Matthews, includes “About a quarter of lower-income workers effectively face marginal tax rates of more than 70 percent when adjusted for the loss of government benefits, a study led by Atlanta Fed Research Director David Altig found. That means for every $1,000 gained in income, $700 goes to the government in taxes or reduced spending. … Small increases in wages can bring big losses of benefits, reinforcing a negative cycle in which workers aren’t rewarded if they improve their skills or pay.”

Read the full article on: Accounting Today

 
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