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I think these kind of problems exist in a lot of countries; it's certainly similar in the Netherlands too, and has been for quite a long time: if you're a low-i
by Beltalowda 5y ago
I think these kind of problems exist in a lot of countries; it's certainly similar in the Netherlands too, and has been for quite a long time: if you're a low-income earner you get social housing, rental assistance, health care assistance, and all these things. But then you start earning too much a lot of these things just drop away and you end up paying a lot more.
This is why we should maybe rethink the way we do a lot of this social security; right now it's a lot of complex pushing around of money to compensate for the fact that people just don't earn enough money to actually make ends meet, which developed over the decades as a solution for this problem and then that problem and such, and we've ended up with a rather crazy system where private companies are effectively subsidized by the state so they can keep their wages low. I don't have any solutions as it's all pretty complex and far outside of my expertise, but it's pretty bonkers.
- kazinator 5y agoA simple way to fix the mathematics, so that poorer people aren't effectively in a a 70% marginal tax rate, is to give the low income handouts to everyone, regardless of income. Universal Basic Income is in this vein. I'd also fix other things. Instead of having "non-refundable tax credits" that operate at the lowest bracket, people should just be able to write reasonable expenses right off their income.