&#62; How did a middle-class single mom wind up with a 79% marginal tax rate? At $120,000 she would pay $16,500 a year more in federal and state taxes, wouldn't qualify for the five-year $12,000-a-year cut in her mortgage payments she's applying for and would be eligible for $19,000 a year less in need-based college financial aid.<p>It's a bit disingenuous to include lack of financial aid as a "tax" on her income .I assume the college is private? Regardless, she's not paying another $19,000 to the government, just not getting it in aid from another institution.<p>Without the financial aid "tax", her marginal tax rate is 47.5% for that $60,000. Not great, but not absurdly high considering it includes federal and state taxes (which in NY are quite high).<p>&#62; Work isn't the only middle-class virtue that is getting punished. The system penalizes savings, too--not just through taxes, but also through programs that reward debtors, the profligate and college families that show up at the financial aid office with empty pockets. Yet another series of tax and benefit rules penalizes marriage.<p>As a non-homeowner and big saver, I agree :)<p>I think the real issue here is that tax code is far too complex, filled with favors and subsidies left and right that complicate matters (think spaghetti code).