Two-Parent Families with Children: How Effective Tax Rates Affect Work Decisions

Working parents with children—particularly low-income families— face prohibitive tax rates that discourage taking on extra employment to get ahead, according to a new report from the C.D. Howe Institute. In “Two-Parent Families with Children: How Effective Tax Rates Affect Work Decisions” author Alexandre Laurin finds that mothers and poorer families are the most adversely affected by this tax trap.