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.