Marginal income tax rates that are high and progressive are likely to have the greatest impact on the labor force participation of:

Question

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High and progressive marginal income tax rates tend to discourage additional work for higher earners, as they keep a smaller portion of each additional dollar earned. This can particularly affect the labor force participation of spouses of high earners, who may see less financial incentive to work due to the high tax rates on their combined income.

Marginal Income Tax Rates That Are High and Progressive Are