Marginal Tax Rates Are Highest for the Poor and Lower Middle Class
At any given income level, of course, there is actually a range of marginal tax rates, depending on how many people are in the family, what programs they are eligible for, even state they live in (because benefit levels for many programs will vary by state). Thus, there will be a range of different marginal tax rates for households at any given income level. The graph shows the range of marginal tax rates for any given income level, ranging from the 10th percentile of marginal tax rates up to the 90th percentile. Earnings on the horizontal axis are shown as a percentage of the federal poverty line (FPL).
Timothy Taylor in the Conversable Economist.
Obamacare exacerbates this problem, I’ve seen analysis that shows when the subsidies are fully turned on families in the 25k-30k annual income range could face marginal tax rates in excess of 100%.
Disincentive to work much?
The highest marginal rates are among those who receive government handouts.