NOVEMBER 20, 2015 3:22PM
CBO: Tangled Web of Welfare Programs Creates High Tax Rates on Participants
By CHARLES HUGHES SHARE
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The dozens of different programs that form our tangled welfare system often impose high effective marginal tax rates that make it harder for low-income people to transition out of these programs and lift of those programs and into the middle class. As the people in these programs enter the workforce, get a promotion, or work more hours, they can lose a significant portion of those earnings through reduced benefits and increased taxes. A new report from the Congressional Budget Office (CBO) illustrates this predicament: many households hovering around the poverty level face steeper effective marginal tax rates than even the highest earners. These prohibitively high tax rates can discourage work and limit their prospects, ultimately making them less likely to escape poverty.
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The Gooferment is immoral, ineffective, and inefficient.
And here’s an example.
At best, it’s an “Unintended Consequence”! At worst, it’s a craven disgusting way to keep people as slaves.
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