If this single parent of two in California earns $10k, they take home $38k. If they earn $50k, they take home $49k. That's a 73% marginal tax rate over a $40,000 earnings range. And that's without childcare and housing subsidies!

More about this household: * 40-year-old parent of two children ages 3 and 5 * $1,500/mo rent * $500/mo childcare * $50/mo broadband expense

@MaxGhenis More people understand math and charts than ever before. Can we just start with common-sense charts and build functions to match? Doing it the other way around always seems to lead to nonsense like this.

@adamyormark This is only half an April Fools' joke

@MaxGhenis Tax policy a la etch-a-sketch

@AbeGong

@MaxGhenis Same energy

@jdcmedlock Damn this is a great analogy

@MaxGhenis This is why California notoriously has a stagnant economy where people refuse to work

@d_feldman California has below-average prime age employment and the highest poverty rate in the nation

@MaxGhenis Are these available for other states? I'd be curious to see them for e.g. Texas, Florida and NY. (I'm a big state chauvinist, apparently)

@StatisticsFTW Yes, though we model TANF in California and not those states (for now--we're working on it in NY and TX). That explains California's increase and spike at the low end. CA TX FL NY

@MaxGhenis What benefit is that >100% marginal rate around 12k and what increment are you analyzing this in? $500?

@Mihoda TANF, and yes $500 increments

@MaxGhenis @jdcmedlock , only you can save us.

@MaxGhenis @tedfrank Here is the Florida marginal tax schedule, for comparison.

@MaxGhenis Damn, Casey Mulligan had quite the point

@MaxGhenis Insane. Getting a raise from 10k to 12k is death.

@MaxGhenis Yuck.

@MaxGhenis Amazing work.