The Marginal Net Taxation of Americans’ Labor Supply

Abstract

At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w27164.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Effect of Medicaid Expansion on Health Insurance for Low-Income Nursing Home Aides

“…For nursing home aides who experienced “job lock,” Medicaid potentially loosens the “job lock” and allows them to have more flexibility in work schedules (e.g., full-time to part-time) and job choices. However, as an income-based program, Medicaid can disincentivize work for those who would like to earn more income (Altig et al, 2020). To meet the income eligibility criteria of Medicaid, nursing home aides might work fewer hours and/or accept lower wages.…”

Reconstructing the Fairtax's Deconstruction

“…Perhaps the concern about workability is the high—34 percent—effective tax rate on labor supply. But 34 percent is far lower than many Americans face under the current tax system (Altig et al., 2020). Indeed, as Altig et al (2020) show, the U.S. fiscal system entails enormous horizontal heterogeneity in marginal effective taxation of labor supply.…”

“…But 34 percent is far lower than many Americans face under the current tax system (Altig et al., 2020). Indeed, as Altig et al (2020) show, the U.S. fiscal system entails enormous horizontal heterogeneity in marginal effective taxation of labor supply. This heterogeneity is particularly pronounced among lower wage workers who face our nation's plethora of benefit programs, each with its income‐ and/or asset‐based claw back provisions.…”

Fundamental Tax Reform Is Urgently Needed

“…[Colour figure can be viewed at http://wileyonlinelibrary.com] Source : Updated version of Altig et al. (2020).…”