Taxes and Cliffs

Taxes and Cliffs
john cochrane

The ill effects of taxation -- the "distortions" -- depend on the total, marginal rate including transfers. If I earn an extra dollar, how much more stuff do I get, or how much more of someone else's services can I receive? That calculation has to including all taxes, federal, payroll, state, local, sales, excise, etc. and  phaseouts.

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