When can a raise mean a big pay cut? The Cato Institute passes along this information:

The current issue of Cato Journal contains an article by Craig J. Richardson looking at how Massachusetts’s mandates and subsidies have created perverse incentives for employers and employees. A $1,000 raise can actually cost workers more than $3,000, while employers face disincentives to expand and hire new workers. The current mess in Massachusetts “offers cautionary lessons for the United States.”

Cross-posted from State House Call.


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