December 6, 2005
CNN Money -- 'The tax-pain threshold'
On the other hand, higher tax rates may reduce total labor hours because lower-earning spouses are more likely to drop out of the work force if they determine their after-tax pay isn't sufficient to pay for child care, said Patrick Fleenor, chief economist at the Tax Foundation, which advocates for lower taxes.
It's also possible that some workers may log more hours after a tax increase if they wish to maintain the same level of take-home pay as they had before, Fleenor said. Or they may work the same number of hours but reduce the intensity of how they work if they know their net take-home pay will be less than before.
