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Thanks for posting this. It's incredibly disappointing how long these issues have been endemic of the US welfare system. I'm not sure if other countries handle
by ajsharp 6y ago
Thanks for posting this.
It's incredibly disappointing how long these issues have been endemic of the US welfare system. I'm not sure if other countries handle phase-outs more efficiently, but these would be painfully easy "bugs" to fix. It is within the power of these governments to address these issues -- they just don't care.
> While the median low-income American family may have a marginal tax rate of about 45%, there’s a large dispersion of experiences, depending on age, family size, location and benefits. Some families face an exaggerated problem -- 70% tax rates or occasionally much more. Just $1,000 in higher pay for a single mother in Oregon, in one example cited in Altig’s research, would result in a devastating loss of $15,000 in housing subsidies.
For further reading, Google "the poverty trap"
https://opentextbc.ca/principlesofeconomics/chapter/14-2-the-poverty-trap/#:~:text=A%20poverty%20trap%20occurs%20when,that%20is%20earned%20by%20working https://opentextbc.ca/principlesofeconomics/chapter/14-2-the....