Sunday, September 8, 2013

Welfare $$ > Minimum Wage


Want to know why unemployment and foodstamp use remains at high levels (foodstamps is all-time high)?

http://www.nationaljournal.com/domesticpolicy/welfare-can-pay-more-than-that-entry-level-job-20130820

http://www.forbes.com/sites/theapothecary/2013/09/02/on-labor-day-2013-welfare-pays-more-than-minimum-wage-work-in-35-states/

"Not only do government-assistance programs for the unemployed pay more than minimum wage in 35 states, but they also pay more than a $15-an-hour job, according to the report. Hawaii has the "most generous benefit package," following by the District of Columbia and Massachusetts.
"In 11 states, these programs pay more annually than the average teacher after his or her first year on the job. In 39 states, it pays more than a starting salary of a secretary. And the comparisons continue.
In total, the federal government spends $668.2 billion on these programs annually, while states give out another $284 billion, the report finds. 

“The current welfare system provides such a high level of benefits that it acts as a disincentive for work,” Tanner and Hughes write in their new paper. “Welfare currently pays more than a minimum-wage job in 35 states, even after accounting for the Earned Income Tax Credit,” which offers extra subsidies to low-income workers who take work. “In 13 states [welfare] pays more than $15 per hour.”

"Tanner and Hughes award the national welfare championship to Hawaii, which offers $60,590 in annual welfare benefits, once you account for the fact that welfare benefits are tax-free to the recipient, compared to work-related wages. That’s the equivalent of $29.13 an hour. Rounding out the top five were D.C. ($50,820 per year and $24.43 an hour), Massachusetts ($50,540 and $24.30), Connecticut ($44,370 and $21.33), and New York ($43,700 and $21.01).

And the kicker:

"welfare benefits are entirely tax-free.

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