October 8, 2009
"80% Marginal Tax Rates After Health Care Reform?
N. Gregory Mankiw (Harvard University, Department of Economics) speculates that marginal tax rates under the Baucus health care "concept" could be as high as 80%:
"Jim Capretta looks at the Baucus healthcare bill and concludes that, because the subsidies phase out as income rises, it imposes an effective marginal tax rate on income of about 30% for many families. Add that figure to the income tax, the payroll tax, and the phase-out of the EITC and "the effective, implicit tax rate for workers between 100 and 200 percent of the federal poverty line would quickly approach 70 percent — not even counting food stamps and housing vouchers."
Read the whole disturbing rest: