More Lucrative For Single Mom To Earn $29K Than $69K

by William Bigelow 13 Jul 2012, 10:30 AM PD

Remember Julia, the fictional woman created by the Obama campaign to illustrate the benefits of big government? Now there is hard evidence that Julia should probably stay home and pick up her government check rather than getting a good job.

A new chart put together by Gary Alexander, Pennsylvania’s Secretary of State, shows that Julia, as a single mom with two kids in daycare, would be better off remaining in her $29,000 per year job than she would be in a $69,000 per year job because of the benefits she would obtain from the government. In the lower paying job, Julia would net $57,327 after she received her government benefits, while in the higher paying job, she would net $57,045.

This situation, where someone doesn’t gain by advancing in their career because the government disincentivizes such behavior, is called the “welfare cliff.” So the government is actually paying people not to be upwardly mobile, discouraging them from achievement and transmitting the message that there is more value in remaining dependent on the government.

Read more: http://www.breitbart.com/Big-Government/2012/07/13/Under-Obama-Julia-Should-Go-On-Welfare?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+BigGovernment+%28Big+Government%29

I'm waiting to hear from Barry's administration, when do the re-education camps open?

Very true and getting worse. There have been different studies for some time now showing effective or "implicit" marginal tax rates of 70 or 80 percent or higher for people making around 20-30K. Benefits phase out and taxes rise as fast as income rises. Hopeless rut. Few on the left will acknowledge it though.

Like the Obamacare lawyer said, "...don't like the individual mandate? Make less money".

No worries, the Gubment will take care of all of us and we will only get what the Gubment says we are entitled to have. That will be something to remember once we all turn our wealth over to the Gubment and commit our lives to the greater glory of the state and our glorious leader.

http://www.outsidethebeltway.com/health ... e_earners/

This was an older article but talks about a 70% effective implicit rate.