…

This is a very dis­turb­ing post. I knew in vague terms that there were dis­in­cen­tives for the poor to earn more mon­ey, but this is aston­ish­ing. Col­or me depressed.

Tax­es and cliffs

The whole tax debate is supreme­ly frus­trat­ing to any­one who sur­vived econ 1. The ill effects of tax­a­tion — the “dis­tor­tions” — depend on the total, mar­gin­al rate includ­ing trans­fers. If I earn an ex…