How Our Welfare System Can Discourage Work - Committee on Ways and Means Subcommittee - Books - Createspace Independent Publishing Platf - 9781539829942 - November 1, 2016
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How Our Welfare System Can Discourage Work

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Low-income families often receive benefits from multiple welfare programs, such as assistance with food, housing, and day care costs, help with medical costs, or cash payments to supplement or replace earnings from work. While these programs nominally support and encourage employment, program "phase-out rules" - especially when combined across multiple programs - mean certain households may not be significantly better off if they work or increase their earnings from work. Economists have studied the interaction between earnings and benefits under various programs by focusing on what are called "effective marginal tax rates," which refers to the portion of an additional dollar of earnings effectively lost due to rising taxes and benefit reductions. Due to effective marginal tax rates that can approach or even exceed 100 percent when individuals receive benefits from multiple programs, it is possible that some individuals can be little better off financially-and in some cases even worse off-if their earnings increase.

Media Books     Paperback Book   (Book with soft cover and glued back)
Released November 1, 2016
ISBN13 9781539829942
Publishers Createspace Independent Publishing Platf
Pages 116
Dimensions 216 × 280 × 6 mm   ·   285 g
Language English