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phonypapercut comments on Politics Discussion Thread September 2012 - Less Wrong
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Wouldn't negative income tax be a fairly strong incentive to stay/become unemployed for those near the cut-off?
Tax rates even now are on marginal dollars to avoid cut off effects. If the cutoff is X for a tax bracket N, and you make X+1, X dollars are taxed in the N tax bracket, and 1 dollar is taxed at the N+1 tax bracket.
This is why I prefer guaranteed minimum income