Effective Tax Rates and Guarantees in the AFDC Program, 1967-1982

A-Tier
Journal: Journal of Human Resources
Year: 1985
Volume: 20
Issue: 2

Authors (3)

Thomas Fraker (not in RePEc) Robert Moffitt (Johns Hopkins University) Douglas Wolf (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Estimates of effective tax rates on earned and unearned income and estimates of effective guarantees in the AFDC program by state are provided for the period 1967-1982. The results indicate that effective real guarantees fell every year from 1967 to 1981 but stabilized in 1982. Effective tax rates on unearned income rose steadily from 1967 to 1981 and took a particularly large additional jump in 1982. Effective tax rates on earned income fell after 1967, but then gradually rose throughout the 1970s until 1982, when they took a much larger jump. Thus, guarantees fell and tax rates rose over the 1970s as tight budgets forced states to restrict benefits, and in the early 1980s tax rates were pushed even higher by federal legislation.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:20:y:1985:i:2:p:251-263
Journal Field
Labor
Author Count
3
Added to Database
2026-01-26