Volume 8, (Supplement) 1973
Heffernan, W. Joseph, Jr. 1973. "Variations in Negative Tax Rates in Current Public Assistance Programs: An Example of Administrative Discretion." Journal of Human Resources 8(S):56-68.
With the welfare reform measures recently considered by the Congress, a great deal of attention has been paid to the marginal tax rate that might be used in any new program. Surprisingly, little attention is paid to the marginal tax rate in use in current programs. This paper considers the way in which the actual tax rate varies from the tax rate which is specified in federal statutes, and uses data from a survey of Vermont welfare cases to illustrate the large variance in average and, hence, marginal negative tax rates faced by current welfare recipients. The article also explores the ways in which this variation is created.
The author is Associate Professor of Social Work, School of Social Work, University of Wisconsin. The research reported was supported by funds granted to the Institute for Research on Poverty at the University of Wisconsin pursuant to the Economic Opportunity Act of 1964. The opinions expressed herein are those of the author. Copyright 1972 by the Regents of the University of Wisconsin System on behalf of the Institute for Research on Poverty.
© 2003 by the Board of Regents of the University of Wisconsin System
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