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New Zealand report reveals higher taxes reduce work incentives for families with children.
The New Zealand Treasury released a report showing how the country's tax and transfer system affects work incentives.
Most New Zealanders face effective marginal tax rates (EMTRs) below 50%, but families with children, especially single-parent families, often encounter higher EMTRs, reducing work incentives.
The study highlights how the welfare system impacts labor market participation among different family types.
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El informe de Nueva Zelandia revela que los impuestos más elevados reducen los incentivos al trabajo para las familias con hijos.