From WSJopinion : Critics of the welfare state sometimes call it a “poverty trap.” Here’s what that means in practice.
Critics of the welfare state sometimes call it a “poverty trap,” and here’s what that means in practice. “One in four low-wage workers,” according to a new study, “face lifetime marginal net tax rates above 70 percent, effectively locking them into poverty.” Incentives matter, and bad ones sap the motivation to climb the opportunity ladder.
The study, published by the National Bureau of Economic Research, has five authors, including David Altig, the director of research at the Atlanta Federal Reserve, Alan Auerbach, a UC...
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