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by misja111 2233 days ago
I don't understand your assumption about a current high marginal tax rate for poor households. I would say that in a progressive tax system, the marginal tax rate decreases when one's income is lower.

In your other post you state that Finnish effective marginal tax rate for poor persons is more than 80%. Do you have a source for that?

1 comments

Effective marginal tax rate, not marginal tax rate. EMTR is what how much you actually get when taxes and reduction of welfare with increasing income is taken into account.

>Do you have a source for that?

Yes. https://vatt.fi/documents/2956369/3012213/muistio_50.pdf

It's in Finnish, but if you go to page 13 there is a nice graph. x-axis is wage, EUR/month, y-axis is effective marginal income tax in year 2015 for single person household who pays rent 440 EUR/month. Effective marginal tax rate is the red dotted line.

In page 20 you can see even what single adult with a child can have. I was actually wrong, the effective marginal tax rate can spike above 11% in some cases.