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03 April 2023

Marginal Tax Rates Including Benefits In California

Consider these results unconfirmed but plausible. The benefit phase out for those transitioning from being poor to lower middle class is well known. It is also well known that the middle class tends to pay higher marginal rates than the upper/upper middle class, although the total combined rates for the middle class in this chart seem high.

It isn't clear to me what is driving the discontinuities at about $50,000 and about $70,000, although my first instinct is to suspect the Affordable Care Act's benefit phaseouts.



Via Marginal Revolution.

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