Table 3.

Welfare Effects

Tax Penalty	% Tax Penalty	Full Welfare Effect	Net Welfare Effect
Baseline: 1250	21.3%	0.051** [0,0.099]	0.041** [0.01,0.072]
450	7.7%	0.072** [0.017,0.124]	0.03*** [0.011,0.05]
550	9.4%	0.07** [0.015,0.121]	0.033*** [0.012,0.055]
650	11.1%	0.067** [0.013,0.118]	0.036*** [0.012,0.06]
750	12.8%	0.064** [0.011,0.115]	0.038*** [0.013,0.064]
850	14.5%	0.062** [0.009,0.112]	0.039*** [0.012,0.067]
950	16.2%	0.059** [0.007,0.108]	0.04*** [0.012,0.069]
1050	17.9%	0.056** [0.005,0.106]	0.041*** [0.012,0.071]
1150	19.6%	0.054** [0.003,0.102]	0.041** [0.011,0.072]
1350	23.0%	0.048* [-0.003,0.095]	0.041** [0.009,0.073]
1450	24.7%	0.045* [-0.005,0.092]	0.04** [0.008,0.072]
1550	26.4%	0.042* [-0.008,0.089]	0.039** [0.006,0.072]
1650	28.1%	0.039 [-0.011,0.085]	0.038** [0.005,0.071]
1750	29.8%	0.036 [-0.014,0.082]	0.037** [0.003,0.07]
1850	31.5%	0.032 [-0.017,0.078]	0.035** [0.001,0.069]
1950	33.2%	0.029 [-0.021,0.074]	0.033* [0,0.067]
2050	34.9%	0.026 [-0.024,0.07]	0.031* [-.003,0.065]
GI: 1250	21.3%	0.056* [0,0.107]	0.044*** [0.013,0.075]