How the tax code encourages the poor to take lower-paying jobs

A couple of days ago, I referred to the fact that poor people face some of the highest marginal tax rates in America. I received several emails from economics professors, gently correcting me: they face all the highest marginal tax rates in America. Because they lose benefits and tax credits, it can actually cost them money to get better jobs. That some of them take those better jobs anyway is a stunning testament to the power of character.

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