How might changes in marginal tax rates on married couples affect labor force participation rates?

Question

Quizplus · Accepted Answer

Lower marginal tax rates on married couples encourage higher labor force participation rates by the secondary income earner. This is because a lower tax burden increases the financial incentive for the secondary earner to work, as they can keep more of their income. This is particularly relevant for married couples where one spouse has a lower income or wants to work part-time. By contrast, higher marginal tax rates on married couples may discourage the primary earner from working as they would face a higher tax burden.

How Might Changes in Marginal Tax Rates on Married Couples