Earning $14,500 A Year - As much Disposable Income As $60,000 (minimum wage, premium, solution)

[OICU812]

Have we made is so that working a dead end, minimum wage job and living off government welfare, is essentially that same as earning $60,000 a year?


In Entitlement America, The Head Of A Household Of Four Making Minimum Wage Has More Disposable Income Than A Family Making $60,000 A Year | ZeroHedge

[freemkt]

Except that if you don't have kids you get NONE of those goodies and you pay a higher effective tax rate than many families making $60,000.

[jeffpv]

Originally Posted by OICU812

Have we made is so that working a dead end, minimum wage job and living off government welfare, is essentially that same as earning $60,000 a year?


In Entitlement America, The Head Of A Household Of Four Making Minimum Wage Has More Disposable Income Than A Family Making $60,000 A Year | ZeroHedge

Most of those items listed aren't disposable income. You can't go and spend Medicaid and CHIP/Section 8/Food Stamp/Utility Bill Subsidies on just anything.

[aus10]

The thing that strikes me first here is the EIC.

[BoomBen]

Originally Posted by jeffpv

Most of those items listed aren't disposable income. You can't go and spend Medicaid and CHIP/Section 8/Food Stamp/Utility Bill Subsidies on just anything.

Disposable and discretionary income are different.
Disposable is after taxes.

Discretionary is after all living expenses

[TigerLily24]

Originally Posted by OICU812

Have we made is so that working a dead end, minimum wage job and living off government welfare, is essentially that same as earning $60,000 a year?


In Entitlement America, The Head Of A Household Of Four Making Minimum Wage Has More Disposable Income Than A Family Making $60,000 A Year | ZeroHedge

This assumes that every single person who receives SNAP also receives a housing subsidy which is absolutely not the case.
Based on just that fallacy alone, I'd say this is a failed premise.

[joeclyde]

I think that is the worst case scenario. Not to mention the quality of life for the person making 60k a year is probably better as well.

[bcattwood]

The guy that made that chart doesn't know what the heck he is doing. A family of four making $60K doesn't pay any where near $13K in payroll and FIT. Take the $60K subtract out the standard deduction ($11,900) and personal exemptions (4 x $3800) and you are left with $32,900 in taxable income. That gets you a tax bill of $4065. Then subtract out the child tax credit and the tax bill drops to $2065. Add in FICA and you get $6655. That is the maximum assuming that they have no other deductions. Child care tax credits, FSA accounts, and pre-tax health insurance premiums could knock their FIT down to $0 really easily.

If he can't calculate that part right, it doesn't give me much confidence in the rest.

[le roi]

the obvious solution is to tax people like Jamie Dimon and Lloyd Blankfein and give their money to the people making $60k

[BigHouse9]

The obvious solution to is to remove government subsidies, crippling regulations, return control to the states and let people have the opportunity to provide themselves instead of telling them that they are too stupid to think for themselves and set them up on a lifetime supply of entitlements.