In response to:

Taxing the Poor

Michael3783 Wrote: Dec 12, 2012 2:43 PM
When I was in high school in the late '70's, my Dad died, leaving my Mother & I to collect AFDC for the Social Security my Dad had paid into for 40 years. I worked at a fast food restaurant, where I logged 47 hours a week. My mother soon realized with all the money I was earning (from working so hard!), our benefits would be cut $1 for every $2 I made - a 50% cut in pay, if you will. Fortunately, I worked for a small, family-run business which, unlike the chains of today, was willing to pay me under the table. Today, I would have every incentive to simply stay home and collect half as much, for doing nothing. Remember my story when you hear proposals for "phase-outs". When the laws lead to such perverse results, the law is an a55
TeaLeaves00 Wrote: Dec 12, 2012 3:50 PM
And with $4 a gallon gas you would still be a head.. but this brings us to more problems such as the total FRAUD in government programs!
TooTired Wrote: Dec 12, 2012 3:12 PM
I'm sorry, but this does not make sense to me. AFDC was the earlier version of the current TANF, in other words, cash assistance. This is what most people are referring to when they say "welfare," which also includes food stamps (now called SNAP) and medical assistance (Medicaid). It's not something that you can pay into. You can get it if you are eligible. Social Security is composed of income for disabled or retired people, and survivor's benefits for their spouses and/or eligible children when the recipient either dies or becomes disabled. These are entirely different things.
S.A.M. Wrote: Dec 12, 2012 10:39 PM
Food stamps are cut more like $2 for every dollar you get extra - it's like they expect your cash to go twice as far. And it is a loss of all benefits - in addition, if you're on medical assistance, they take it all - and housing assistance takes another chunk - no amount of increase in pay or COLAs help the poorest people because the state takes every last increase.

With all the talk about taxing the rich, we hear very little talk about taxing the poor. Yet the marginal tax rate on someone living in poverty can sometimes be higher than the marginal tax rate on millionaires.

While it is true that nearly half the households in the country pay no income tax at all, the apparently simple word "tax" has many complications that can be a challenge for even professional economists to untangle.

If you define a tax as only those things that the government chooses to call a tax, you get a radically different picture from...