Occupy Wall Street Public date: 10.08.2017 19:47:16

Publisher: motherjones.com

Author:

17 Dec 2011

The Problem With Means Testing Social Security Mother Jones

One of the first things you learn in Means-Tested Welfare Economics 101 is that means-tested welfare programs produce enormous marginal tax rates. Say you have a $5,000 benefit that's available only to people making less than $10,000. If you have market income of $9,000, this means you have total income of $14,000. But if you have market income of $11,000 you have total income of $11,000. You're essentially paying a marginal tax rate of over 100%.
One of the first things you learn in Means-Tested Welfare Economics 101 is that means-tested welfare programs produce...

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