In a recent NBER report by David Altig et. al., researchers found that by earning an extra $1,000, one in four of the poorest households, regardless of age, gives half to two-thirds of their paycheck to the government in taxes due to marginal net tax rates above 70 percent on earned income.[1] This has significant implications for work incentives and tax credit eligibility if filers combine their incomes and continue working. [read post]