"On efficiency grounds, the money would probably be better spent
reducing marginal tax rates  overall or reducing the deficit."

Opinion,  Not Fact.

On Wed, Oct 15, 2008 at 12:11 PM, Sam <[EMAIL PROTECTED]> wrote:
> http://www.taxpolicycenter.org/UploadedPDF/411693_CandidateTaxPlans.pdf
>
> Page 23
>
> The Making Work Pay credit is intended to offset some of the
> regressivity of the Social Security payroll tax and encourage
> low-income people to work, but it does so at a substantial revenue
> cost—$728 billion over 10 years. Because most workers earn more than
> $8,100 annually, most of the revenue loss would go to taxpayers who
> receive no incentive to work more. A credit that was targeted more
> toward low-income workers would provide a more cost-effective work
> incentive. And because the phaseout of the credit increases marginal
> tax rates for those workers in the phaseout range, it might actually
> give those workers an incentive to work less. On efficiency grounds,
> the money would probably be better spent reducing marginal tax rates
> overall or reducing the deficit.
>
> Anything else I can help you with?

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