100% Plus Taxation Key to Permanent Dem Majority
28th November 2012
William Jacobson has figured it out.
Is it possible to pay more than 100% of your last dollar of income in taxes? And if it were, would you bother to earn that last dollar?
Herein lies the key to how Democrats will obtain a permanent, economically-enslaved majority if universal income-based health care subsidies are enacted. And it is much worse and more nefarious than even the Wall Street Journal recently pointed out in Confessions of an ObamaCare Backer.
The scheme is simplicity itself. Welfare phaseouts create a huge ‘hump’ or curb that has to be gotten over before increased income will overcome the negative effect of losing benefits. Most poor people can’t get over that hump, so they’re trapped in low-income dependency on government benefits.
It isn’t until the taxpayer is making over $60,000 a year that he starts getting more net benefit than he was getting at $18,000. And there aren’t many underclass that can jump from $18,000 to over $60,000 — or would be willing to suffer through the hammering they get climbing up the hard way. They’re not that stupid.
In addition to all the other problems with highly subsidized, income-tested health care benefits, will come an even more permanent underclass which, being economically rational, will choose not to earn another dollar rather than lose more than a dollar of benefits.
Result: A locked-in permanent Democrat-voting underclass.