A Quote by Thomas Sowell
The biggest and most deadly 'tax' rate on the poor comes from a loss of various welfare state benefits - food stamps, housing subsidies and the like - if their income goes up.
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The fundamental fact in the lives of the poor in most parts of America is that the wages of common labor are far below the benefits of AFDC, Medicaid, food stamps, public housing, public defenders, leisure time and all the other goods and services of the welfare state.
And the same goes for government benefits. The Center for Immigration Studies estimates that 62 percent of households headed by illegal immigrants use some form of cash or non-cash welfare programs like food stamps or housing assistance. Tremendous costs, by the way, to our country.
Mitt Romney has won the 2012 presidential nomination by promising Republicans that he would end a so-called 'culture of dependency' on welfare - welfare defined as 'free stuff' and food stamps for poor folks, not tax breaks for Big Oil or tax shelters for Bain executives.
If we can afford food stamps and housing subsidies, why not gun stamps to help urban citizens survive the next Islamist assault?
Lobbyists know that a 0 percent tax rate on capital income is not, in fact, the lowest possible rate. There can be negative tax rates. There can be subsidies. There can be allowances for depreciation. Lobbyists are adaptive creatures.
One of the most insidious consequences of the present burden of personal income tax is that it strips many middle class families of financial reserves & seems to lend support to campaigns for socialized medicine, socialized housing, socialized food, socialized every thing. The personal income tax has made the individual vastly more dependent on the State & more avid for state hand-outs. It has shifted the balance in America from an individual-centered to a State-centered economic & social system.
The Joint Committee on Taxation estimated that in 2016, the corporate income tax raised $300 billion in revenue, while what it called 'targeted subsidies' cost about $270 billion. In other words, Congress could eliminate the subsidies and cut the corporate rate nearly in half without any significant loss in revenue.
If you look at the performance of the zero-income-tax-rate states and the highest-income-tax-rate states, I believe a large amount of their difference is due to taxes. Not only is it true of the last decade, but I took these numbers back 50 years. And, there's not one year in the last 50 where the zero-income-tax-rate states have not outperformed the highest-income-tax-rate states.
Let's take the nine states that have no income tax and compare them with the nine states with the highest income tax rates in the nation. If you look at the economic metrics over the last decade for both groups, the zero-income-tax-rate states outperform the highest-income-tax-rate states by a fairly sizable amount.
We will attract more people to Kentucky by lowering our income tax rate. In fact, lowering the income tax rate is the single most important thing we can do to create opportunity.
A thin safety net, an expansive security state: This is the American way. At all levels of government, the country spends roughly double on police, prisons, and courts what it spends on food stamps, welfare, and income supplements.
The zero-income-tax-rate states have far faster growth in tax revenues than did the states with highest income tax rate over this period.
I grew up on Section 8 housing, food stamps, welfare, and dealing with social services. I never had a Christmas. I never had a birthday.
The tax that was supposed to soak the rich has instead soaked America. The beneficiary of the income tax has not been the poor, but big government. The income tax has given us a government bureaucracy that outnumbers the manufacturing work force. It has created welfare dependencies that have entrapped millions of Americans in an underclass that is forced to live a sordid existence of trading votes for government handouts.
If the Left really wants to preserve family structure and advance cultural values such as work, why do they oppose reforms to a welfare system that pays teenage girls to have babies out of wedlock and disparage conservative proposals that require able-bodied Americans to work for their welfare benefits like food stamps?
The Food Stamp Challenge, which challenges higher-income families to live as if they are on food stamps, estimates that a person on food stamps has a budget of about $1.25 per meal. In other words, a family on food stamps must buy an entire meal per person for less than the cost of an average cup of coffee.
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