In 2019, I blogged about how Harvard Law’s LIPP’s top bracket created perverse incentives when combined with state and federal income taxes. LIPP’s top bracket requires earners to dedicate 80% of their marginal income to repaying their HLS student loans. When combined with state and federal income taxes, this means that people in this bracket could face a greater than 100% marginal “tax” (i.e., tax+LIPP) burden, thus disincentivizing higher earnings and increasing burdens on LIPP. HLS has revamped their LIPP policies since then, but the 80% marginal contribution in the top bracket still remains.