Earn 16 get no subsidy Earn 15 get 1 subsidy Earn 12 get 4 subsidy What’s the difference to the worker? Fork 4/3rds harder to earn 16 not 12, see no gain. E

Earn 16 get no subsidy Earn 15 get 1 subsidy Earn 12 get 4 subsidy What’s the difference to the worker? Fork 4/3rds harder to earn 16 not 12, see no gain. Equivelent of 100% marginal tax.