NCPA - National Center for Policy Analysis

U.S. Inequality, Fiscal Progressivity and Work Disincentives

February 3, 2016

While many debate the degree of income inequality in the United States, there is far less inequality in spending power due to the benefit transfers, such as Medicaid and food stamps, in the U.S. fiscal system. However, this fiscal redistribution generally comes with very high work disincentives for households of all ages, regardless of income class, according to Boston University professor Laurence Kotlikoff.


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