The Case in Point on Marginal Tax Rates suggests:
A) a lower marginal tax rate for a 60-year old couple because of lower retirement income.
B) a higher marginal tax rate for a 30-year old couple because of payroll taxes.
C) equivalent tax rates across different age groups because of the number of social programs that tend to offset each other.
D) a negative marginal tax rate for a 30-year old couple because they are more likely to have children and qualify for a variety of programs and tax credits.

Question

Quizplus · Accepted Answer

A negative marginal tax rate for a 30-year-old couple is suggested due to the likelihood of them having children and qualifying for various programs and tax credits, which can result in receiving more from the government than they pay in taxes.

The Case in Point on Marginal Tax Rates Suggests