The Twice-Poverty Trap: Tax Rates Faced by AFDC Recipients

Research Report

The Twice-Poverty Trap: Tax Rates Faced by AFDC Recipients

Abstract

The authors present the results of a two-year study to develop the capability to provide comprehensive, population-wide estimates of true tax rates faced by individuals participating in most social welfare and tax programs with respect both to current law and proposed changes in the law. The results focus on households receiving Aid to Families with Dependent Children. Also discussed are the work and marriage penalties in welfare and the implications of this study for welfare reform efforts.

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