Wednesday, August 22, 2012

‘The US labour market doesn’t work’

Via:  FT

If the labour market stick has cracked, the carrot is decaying. The key challenge is low-skilled men, many of whom are not married. But America’s negative income tax is overwhelmingly targeted at parents. The US has spent a generation boosting incentives for high-skilled workers by cutting top marginal tax rates. But payroll taxes have been allowed to take a rising share of low earners’ incomes.

How many times have you heard the outright lie that half of the American workforce doesn’t pay any income taxes?  The payroll tax is an income tax.  Article is here.

1 comment:

  1. It's true in the UK too. In both countries there is an increasing mismatch between the jobs available - many which provide a solid middle class living - and the skills of the workforce