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One interesting thing about marginal tax rates is what happens at the very bottom of the scale.
Take a 30-year old, single, long term unemployed person currently in a shared house, paying £75 a week in rent but with no savings or income.
In the UK they would receive about £140 a week in Income Support and Housing Benefit
Now suppose they get a half-time (20 hour) job at minimum wage. That'll bring in £116 a week.
They now have no entitlement to Income Support, and their housing benefit drop from £75 to £42 a week. Total weekly income: £158.
That looks to me like a marginal tax rate of about 85%!
And people complain about a 50% marginal rate on income over £150,000 pa?
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