When tax rates increase, people often change their economic behaviour in ways that shrink the targeted tax base.
marginal tax rates
On average, the METR for modest-income families is 46 per cent compared to 43 per cent for the highest-income families.
Making various benefits tax-free gives an advantage to rich people, too.
The share of women in the top one per cent has almost doubled since 1982.
Low-income individuals and families facing high METRs would benefit from lower claw-back rates.