Combined Effects of Federal and State Income Taxes, Payroll Taxes, and SNAP Benefits

Effective Marginal Tax Rates for Low- and Moderate-Income Workers


Effective marginal tax rates among low- and moderate-income workers are about 30 percent, on average, with about one-third of that rate stemming from the federal income tax, more than a third from federal payroll taxes, and the remainder from state income taxes and the phaseout of SNAP benefits (formerly known as food stamps).

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Inflation-Adjusted Gross Domestic Product After Recessions

What Accounts for the Slow Growth of the Economy After the Recession?


During the three years following the recession in 2008 and 2009, the economy’s output grew at less than half the rate seen, on average, during other economic recoveries in the United States since the end of World War II.

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Costs of Military Pay and Benefits in the Defense Budget


For fiscal year 2013, the Department of Defense has requested $150 billion for pay and benefits for current and retired military personnel—-more than one-quarter of DoD’s total budget (excluding funding for military operations in Afghanistan).

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Choices for Deficit Reduction


Putting the federal budget on a more sustainable path is likely to require a combination of policies, many of which may stand in stark contrast to policies now in place.

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Economic Effects of Policies Contributing to Fiscal Tightening in 2013


Significant tax increases and spending cuts are slated to take effect in January 2013, sharply reducing the federal budget deficit and causing, by CBO’s estimates, a decline in economic output and an increase in unemployment. What would be the economic effects of eliminating various components of that fiscal tightening—or what some term the fiscal cliff?

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