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Do higher income tax rates generally reduce the incentive to earn income?

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There is broad agreement among economists that higher income tax rates reduce incentives to work and earn income. There is disagreement over the strength of these effects, but even prominent liberal economist Paul Krugman has written: "Any income tax system will tax away part of the gain an individual gets by moving up the income scale, reducing the incentive to earn more."

DocumentationEconomic Effects of TaxesTaxes & Work Incentives



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