dependency and encourage work. Both the US and UK have made in-work benefits a key part of their strategy through the Earned … Income Tax Credit (EITC) and Working Families' Tax Credit (WFTC) respectively. But although similar in aims, there are … combination of in-work benefits and welfare benefits produces a theoretical budget constraint with good financial incentives for …

Identifying the effect of differential taxation on portfolio allocation requires exogenous variation in marginal tax … rates. Marginal tax rates vary with income, but income surely affects portfolio choice directly. In systems of individual … taxation - like Canada's - couples with the same household income can face different effective tax rates on capital income when …