Tags: pizza | entitlement | welfare

American Families Would Watch ‘a Pizza a Week’ Go Over the Cliff

By    |   Monday, 31 Dec 2012 01:10 PM

One result of the fiscal cliff would likely to be pushing more people out of the work force and into increasingly generous government welfare programs.

Defining the level of income that makes a family rich has been the centerpiece of the fiscal cliff debate. Rich people are targeted for a tax hike, and the only question in the debate seems to be who is rich. Headlines and news stories often give the impression that no one else would be impacted by going over the fiscal cliff.

As part of the stimulus bill crafted by Democrats to celebrate President Barack Obama’s first inauguration, the payroll tax was cut by 2 percentage points for everyone. This was touted by the president as equivalent to a pizza a week for an average family.

Now, the president and everyone else in Washington seems to have decided that it is time to take that pizza away, perhaps to be redistributed as canned vegetables in school lunches.

Minimum-wage workers will be losing almost 15 cents an hour from their $7.25 hourly wage, an amount that adds up to $290 a year, or one week’s worth of full-time work.

Not all of the benefits available to low-wage workers are falling off the cliff. The stimulus act increased food stamp benefits by 13.6 percent and that provision remains in effect, even though it is twice as high as the change in inflation over the same time.

Obama seems to have abandoned the “Making Work Pay” provisions of the stimulus act and is allowing entitlements to grow while raising taxes on everyone who works.

A tax increase that amounts to a pizza a week makes work less attractive to low-wage workers and would increase the cost of entitlements even more as the fall off the fiscal cliff pushes America a little closer to a welfare state.

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MichaelCarr
One result of the fiscal cliff would likely to be pushing more people out of the work force and into increasingly generous government welfare programs.
pizza,entitlement,welfare
307
2012-10-31
Monday, 31 Dec 2012 01:10 PM
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