Why is government giving tax money and increasing debt to support Americans who don’t need it?

If one was truly cynical they could surmise that the spreading of government payments and subsidies across nearly all income levels was a matter of buying votes and establishing never ending dependency on those running government, often with the illusion of it all being free.

If it were otherwise, why isn’t assistance targeted at those in need and designed to help those individuals gain greater personal independence and why not consider one’s liquid assets in the eligibility criteria?

The following is summarized from the following Wall Street Journal article. Entitlements for the Affluent.

• The ex­panded child tax credit has be­come a monthly gov­ern­ment check that trans­fers large sums of money from child­less tax­payers to fi­nan­cially se­cure mid­dle-class fam­i­lies. A mar­ried cou­ple mak­ing $150,000 a year with four chil­dren (two un­der the age of 6, two above) would qual­ify for $13,200 a year. [a couple earning $400,000 can also receive a tax credit]

• A new en­ti­tle­ment caps child-care costs at 7% of income and was ini­tially lim­ited to par­ents mak­ing up to 200% of their state’s me­dian in­come. But progressives elim­imitated the cap in commit­tee so it would cover wealth­ier vot­ers. The en­ti­tle­ment is now universal.

• De­moc­rats also want paid fam­ily leave—about two-thirds of av­er­age wages for up to 12 weeks a year for any fam­ily care. In the case of new-borns both par­ents would be en­ti­tled to leave. This means a mar­ried cou­ple with a new­born—each earn­ing $200,000 – could each col­lect more than $1,000 in weekly ben­efits. A cou­ple mak­ing $100,000 each would be el­i­gi­ble for roughly the same amount.

• This spring’s Covid bill elim­i­nated the in­come cap (400% of the poverty level) on who qual­i­fies for subsidies under Obamacare. A fam­ily of five with a 60-year-old head of house­hold in Prescott, Ariz. could earn $350,000 a year and still qual­ify for an Obamacare sub­sidy of $21,309. At $500,000 of in­come, that fam­ily would still get $8,559 in fed­eral health­care dol­lars.

• The pending legislation in­cludes a new $12,500 electric ve­hi­cle tax credit. Since EVs cost be­tween $10,000 and $15,000 more than sim­i­lar gas-pow­ered ve­hi­cles, this money will mostly flow to well-off coastal dwellers, es­pe­cially in Cal­i­for­nia. A cou­ple can make $800,000 a year and still qual­ify for some of the credit.

• The big­gest subsidy of all may be the re­turn of the state and lo­cal tax de­duc­tion currently capped at $10,000. Only some 15% of tax­pay­ers itemize their deduc­tions, and most of those who would ben­e­fit from a higher cap are the af­flu­ent—again mostly in richer coastal states.

5 comments

  1. The phrase “the wealthy can afford to pay more taxes because it’s only fair” is used quite often by “progressive” Democrats. After all, how can you and I be against “soaking the rich’?
    But we are all, including the poor, paying more thru the inflationary taxes.

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  2. I never quite understood why liberal college indoctrinated people were always supporting social welfare programs and demanding other free stuff. Because it is straight up vote buying. I do not qualify for those deductions so I was unware of the particulars. It has always upset me that a program is for people up to 150% of the poverty level but 400%? If you can’t afford your children, don’t have anymore. Maybe the government should offer free birth control instead.

    To me, if the federal minimum wage is $7.25 / hr which equals $15,080 / year, then the government has set the poverty level at $15,079 / yr. If the true need is 400% of the poverty level then the minimum wage should be $29.00 / hr. or $60,320 / yr. No wonder why 50% of the people don’t pay income taxes.

    Democrats keep wanting to tax the rich. Getting rid of the SALT exemption cap will stop taxing the rich. If your local property taxes are too high then your city and state have a spending problem. If you can’t afford your mortgage and taxes, then you better move to more affordable housing. Why should I pay someone else’s share of income taxes because they chose to buy an expensive house and have to pay more property tax than I do?

    Where are all the people that complain it’s not fair now?

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    1. The expansion of handouts is the path to a European welfare state model for the US. Once the handouts are entrenched policy, the need for all sorts of new taxes become apparent. The VAT and other like taxes that will fall on all the people (not just the over 400k per year crowd). Change is coming fast and furious.

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