The fact that the tax rate on the poor is essentially zero, gives a
stronger incentive to remain poor and not raise taxes, since a poor
person can be better off.
Removing the safety net and taxes to achieve this welfare, would allow
the middle class to grow.
Having the welfare policies limit growth in the
economy and in the well-being of the middle class is evident.
From Daily Events:
Link
Last week The New York Times reported that the federal social safety
net is now used to keep the middle class in the middle class much more
so than it is used to lift the poor out of poverty. This is
causing a lot of resentment among the middle class that still believes
its members can work hard and elevate themselves into the upper levels
of society. But they really cannot any more.
Were a person to start taking the risks necessary to elevate them
and their family out of the middle class, they would have to cut the
strings to the safety net under them, which in turn puts them at a
competitive disadvantage in the short term to their neighbors. Too
few are willing to take that risk.
Compound that with the most horrifying fact you will read today.
A single parent family with income of $14,500.00 actually has more
disposable income in the United States than a family earning $60,000.00
a year. Yes, you read that correctly.
Now are you ready for your head to explode?
"If the family provider works only one week a month at minimum wage, he or she makes 92
percent as much as a provider grossing $60,000 a year."
When the
government is taxing the middle class to subsidize the middle class and
the poor have more disposable income than the middle class, we're doing
something wrong. We are failing.
On top of that, now the Nanny State does not just want to subsidize
us, they also want to inspect our children’s lunches and convey a sense
to our kids that Uncle Sam, not mom and dad, will take care of them.
And if you want the really dirty little secret, the fact is this is a
bipartisan problem. No one on the left has the fortitude to take
on the problem without further subsidies. Too few on the right are
willing to tackle the subject. The votes are not there in Congress
to do what must be done.
But we must cut the social safety net out from the middle class and,
in doing so, make it far simpler for the middle class to grow. We
must return to an America where the small businessman can become a big
businessman. Today, it is far too difficult for that to happen.
But we must cut the social safety net out from the middle class and, in doing so, make it far simpler for the middle class to grow.