Many Americans are trapped by the welfare state that has been created. Those that receive government benefits reach a point where it doesn’t make economic sense for them to get a job or work more hours because they will lose all their welfare benefits.
I propose a tiered plan of welfare where Americans can climb out of their situation, not get stuck in the current welfare trap, and where their efforts to improve their economic standing and independence is rewarded.
This plan needs to have accountability so folks don’t abuse the blessing, and also needs to be written in a way that is limited by windows of time, so folks feel the need to find a better opportunity and not grow comfortable.
Signed up to this site just in order to propose this exactly:
The current structure of many social welfare programs, such as childcare vouchers and Medicaid, often creates a financial cliff: if you earn below a certain income threshold, you are eligible for benefits, but once you surpass that threshold, you lose all of them. This sudden cutoff can result in a situation where a modest pay raise leads to the loss of benefits that far outweighs the increase in earnings. For example, in New York, earning $80,000 with three children might make you eligible for full benefits, but earning $90,000 could cost you more than $50,000 in lost assistance.
A better approach would be a gradual reduction of benefits as income rises, ensuring that people are not penalized for earning more. For instance, households earning between $50,000 and $65,000 could receive a full amount of benefits, while those earning between $65,000 and $85,000 could receive half, and those making $85,000 to $100,000 might still receive 10%. This gradual phase-out would provide incentives for individuals to increase their income without fearing a sharp financial penalty, helping more people transition from the lower class to the middle class, where they currently struggle to stay afloat.
ESSENTIAL LANGUAGE for us to use: “Benefits Cliff.”
This idea is essential as I’ve seen firsthand how people are trapped in poverty, disincentivized to become upwardly mobile because they will be punished for it --working 10 times as hard to ultimately make less money. It’s absurd, cruel to folks in poverty, and a massive waste of our tax dollars.
Its been many years since I’ve needed state assistance, so i don’t know the actual income that qualify a household to receive it. I will offer an example of what i’d love to see, though:
Lets day the max monthly income to qualify for full medical ins and food stamps is $1500 and welfare recipient currently brings home $1499. A $0.01 raise per hour or extra shift worked every month would put you over that income and you no longer qualify for a single benefit. Why would anyone want a raise, extra shifts, OT, a promotion if they would immediately need to pay for medical ins - a family of 3 costing $1000 of your lucky, and no help with groceries. One cent could change your situation so negatively.
Why not offer something like:
$1501-$1700 monthly income will provide you %90 of those same benefits
$1701-$1900 provided you 80%
And so on.
People who want better for themselves and their children would be able to strive for extra shifts, raises/ promotions/ better paying jobs, without the fear of what that would do to their overall living situation.