Quote of the Day
15th December 2012
“The biggest and most deadly “tax” rate on the poor comes from a loss of various welfare state benefits– food stamps, housing subsidies and the like– if their income goes up.
Someone who is trying to climb out of poverty by working their way up can easily reach a point where a $10,000 increase in pay can cost them $15,000 in lost benefits that they no longer qualify for. That amounts to a marginal tax rate of 150 percent– far more than millionaires pay. Some government policies help some people at the expense of other people. But some policies can hurt welfare recipients, the taxpayers and others, all at the same time, even though in different ways.”
— Thomas Sowell