Less Income = More Disposable Cash

[BigDee]

I participate in quite a few forums. The increase to taxes has been a hot topic on just about every forum I participate in. While taxes on everyone have gone up for most of us and we are now expected to make due with less nothing has happened to entitlement spending. While entitlements may not seem like a big deal to many people, if you’re a tax payer they probably should. I decided to crunch a few numbers and show a comparison that demonstrates just how entitlements work.



Example 1: Single mother with 3 children who earns $25,000 per year and receives $500.00 per month in child support. Because of her low income she receives subsidized housing that also includes utilities. She receives EBT of $300.00 per month(Food stamps), government funded healthcare and government subsidized childcare. (example 1 is a real person and these are actual figures)



Figures below are monthly



Gross Income $ 2,083.33

Child Support $ 500.00

SS and MC $ (159.37)

State Tax $

Fed Tax $

Insurance $

__________________________

Total Net Income $ 2,423.96

Housing $ (325.00)

Food $ (200.00)

Child Care $ (160.00)

Utilities $

__________________________

Disposable income $ 1,738.96

Example2: Single mother with 3 children who earns $55,000 per year and receives no government benefits.



$55K Earned Income

Gross Income P/R $ 4,325.00

Child Support $ 500.00

SS and MC $ (330.86)

State Tax $ (113.60)

Fed Tax $ (307.83)

Insurance $ (250.00)

__________________________

Total Net Income $ 3,822.71

Housing $ (975.00)

Food $ (500.00)

Child Care $ (2,400.00)

Utilities $ (200.00)

__________________________

Disposable income $ (252.29)



Here is where the fun really starts.



Example 1 qualifies for the earned income credit. The max earned income credit benefit for a single income earner with 3 children is $5,891.00 per year. Example 1 also qualifies for a dependent care tax credit of $556.80 per year giving her an additional $6,447.80 of disposable income each year.

Example 2 does not qualify for the earned income credit. Example 1 does however qualify for the dependent care tax credit which will give her a tax credit of $1,200. The $1,200 is still not enough to cover her monthly deficit of $252.59.

[ChadAmberg]

My wife used to work at a program designed to get the generational welfare folks jobs. She was supposed to counsel them in resumes, interviews, help them look for jobs, etc. She came out of that job months later with the opinion that they should be put down.

[mutt]

I want to know why example #1 gets any assistance at all? She has a job. Pay your own damn bills! No one said you are guaranteed a life with ample disposable income. You want more money? Work for it. This kind of shit gets my blood boiling. Every time I look at my pay check and see the incredible amount of money stolen from me and my family for the "social good", I think of the rat bastards who sit on their ass all day and sponge. I hope they choke on it.

[Kraven251]

seen on a variety of forums, or some variant : Taxes you are doing them wrong...

An answer to the question, 'Do you have any dependents?',
LIST....... '12 million illegal immigrants, 10 million crack heads,
20 million unemployed too lazy to work, the entire cast of The Jerry
Springer Show, 30,000 people in penal establishments in Missouri, 2
million leftovers from Katrina, half of Mexico, all of the House of
Representatives, most of the Senate, and Michelle Obama’s trip to visit
relatives in Africa.

Example 2 is not claiming enough dependents.

[kidicarus13]

The system has been this way (unfair) for quite some time. It's disgusting and helps me understand why some segments in society have no incentive to work harder/longer. As the years pass, taxes will increase... get used to it.

[Dave_L]

Not surprising at all.

[Dave]

So going to college and getting a degree was a waste of my time then?

[kidicarus13]

So going to college and getting a degree was a waste of my time then?

Not a waste of time, you just had to work harder to end up with less than those that don't give a rat's ass. I mean someone has to pay for the entitlements, might as well be you.

[BigBear]

So going to college and getting a degree was a waste of my time then?

Yes. I'm in the same boat and I have two of 'em....

[anomad]

Is 2400 a month realistic for child care?