In America, for people earning zero to $60,000, taking an additional job and earning extra income causes them to lose a dollar of government benefits for each dollar earned, creating a 100% marginal tax rate on labor supply.

factualpending

Speaker

John Cochrane

Evidence Quote

from zero to $60,000, if you earn an extra dollar of income, they take away a dollar of benefits

Source

Will Western governments soon hit their debt limits? Prof. John CochraneMoney & Macro Talks
Created: 8/12/2026, 6:10:20 PM

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