4 ms·
Suppose you get $10kpa in SSDI, and the system described is in place. You then start working part-time and get paid $10kpa. What is your increased take home pay
by scarmig 4y ago
Suppose you get $10kpa in SSDI, and the system described is in place. You then start working part-time and get paid $10kpa. What is your increased take home pay? $0; the effective marginal tax rate was 100% for dollars 0-10000 you earned. That means there's no incentive to take up a low paying but still useful job.
- mlyle 4y agoIt could be even worse; SSDI isn't taxable, but you'll be paying various payroll taxes on that $10k. So possibly over 100%.