<p>CBO Analyzes Effect of Tax Changes on Labor Market</p>

CBO Analyzes Effect of Tax Changes on Labor Market

U.S. Congressional Budget Office

The effects of tax policy changes, such as changes in the marginal tax rate, on labor market outcomes are smaller in times of high unemployment because employee costs are less sensitive to changes in after-tax wages, according to a report released by the Congressional Budget Office August 27.

<p>The effects of tax policy changes, such as changes in the marginal tax rate, on labor market outcomes are smaller in times of high unemployment because employee costs are less sensitive to changes in after-tax wages, according to a report released by the Congressional Budget Office August 27.</p>