Briefing
How Can We Make a Progressive Tax System More Efficient?
Karabarbounis, Marios (2024-08)
In the U.S., income tax rates rise as households earn more. However, such a system means workers have a reduced incentive to increase their earnings. In this article, I discuss a finding from one of my papers that explores the possible effects of targeting tax rates on additional characteristics besides income.
Richmond Fed Economic Brief , Volume 24 , Issue 26