The Congressional Budget Office just published a report entitled “Marginal Federal Tax Rates on Labor Income: 1962 to 2028.” The marginal tax rate is defined as “the percentage of an additional dollar of earnings that is unavailable to an individual because it is paid in [federal income and payroll] taxes.” As the rates rise, the amount of compensation a worker retains is reduced, and that may reduce the incentive to work more. Some people drop out of the labor force for the same reason. Here’s the full report. © 2019

Contact the CG Team with questions via the form to the right or call 732.676.4100.

Congress of the United States Congressional Budget Office. January 2019. Marginal Federal Tax Rates on Labor Income: 1962 to 2028.