Posted on 12/04/2025 1:53:20 PM PST by grundle
Our entire safety net is designed to catch people at the very bottom, but it sets a trap for anyone trying to climb out. As income rises from $40,000 to $100,000, benefits disappear faster than wages increase.
I call this The Valley of Death.
Let’s look at the transition for a family in New Jersey:
1. The View from $35,000 (The “Official” Poor)
At this income, the family is struggling, but the state provides a floor. They qualify for Medicaid (free healthcare). They receive SNAP (food stamps). They receive heavy childcare subsidies. Their deficits are real, but capped.
Every dollar you earn climbing from $40,000 to $100,000 triggers benefit losses that exceed your income gains. You are literally poorer for working harder.
2. The Cliff at $45,000 (The Healthcare Trap)
The family earns a $10,000 raise. Good news? No. At this level, the parents lose Medicaid eligibility. Suddenly, they must pay premiums and deductibles.
Income Gain: +$10,000
Expense Increase: +$10,567
Net Result: They are poorer than before. The effective tax on this mobility is over 100%.
3. The Cliff at $65,000 (The Childcare Trap)
This is the breaker. The family works harder. They get promoted to $65,000. They are now solidly “Working Class.”
But at roughly this level, childcare subsidies vanish. They must now pay the full market rate for daycare.
Income Gain: +$20,000 (from $45k)
Expense Increase: +$28,000 (jumping from co-pays to full tuition)
Net Result: Total collapse.
When you run the net-income numbers, a family earning $100,000 is effectively in a worse monthly financial position than a family earning $40,000.
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I’ve been thinking generally about the problems of the definition of the word “fair”.
Some people will say that Person A is a surgeon and makes more money than Person B who works at Burger King. The “fair” thing would be for Person A to pay a lot more in taxes. They can afford it. It’s “fair”.
Other people will say that Person A and Person B should each pay the same in taxes. At least the same percentage. Maybe 10% of whatever each makes. Treat them the same. That’s “fair”.
It’s two radically different interpretations of “fair” and it leads to two very different worldviews.
Apparently there is no longer any value to be able to say that I can provide for myself and am beholden to no one.
“It will take so-called “conservatives” understanding that Social Security and Medicare must end. The government must entirely end its business of providing old-age pensions, old-age medical insurance, and monetary support to the poor. It does all these things badly. It has no constitutional authority to do any of them.”
It has the power to tax incomes, without apportionment due to AMENDMENT XVI.
“The Congress shall have power to dispose of...property belonging to the United States”
ARTICLE IV SECTION 2
Congress can take your hard-earned money and give it to a garbage man to throw in his truck, or to give to his sister, or to your doctor.
Yeah, but even employer health insurance is unaffordable if you have a family and are making, say, $60k. Add on the rest of the family and the employee’s contribution then goes through the roof. And even then the coverage sucks.
When I lived in San Antonio, Texas... in 1979. I tried REAL hard to make less than $10,000 because if I earned less, I would get FREE rent help, free food stamps, and FREE dental care for my kids. I played the game that the government put in place for people to give us an INCENTIVE to make less.
“Social Security and Medicare must end”
I’ve paid property taxes to pay for K-12 education for about forty years.
I expect the educated kiddies to throw some money back my way. I’ve had no children.
You don't know my age.
paid into SS for my whole life
No, you paid into your parents' and grandparents' SS checks.
I need my money back
Your money doesn't exist any more. The only way you'll get any money is to take it from your (or somebody's) children. That's the way government bonds work. SS is a scheme to turn us all into dependents of a thieving government.
Don’t have a bunch of kids and a wife if you cannot afford them.
Congratulations. You’re a communist.
1) Medicare/federal "healthcare" is a no-brainer: end it NOW!!!! Medicare/federal "healthcare" is the lion's share of federal spending. And at some point, the feds pay back Medicare taxes.
2) Social Security is more problematic. It is unconstitutional but since many rely on it for their financial survival, it should be gradually ramped down.
3) End the balance of unconstitutional federal spending and agencies NOW!!!
Do this and most of the problem is solved. The only thing left is how to humanely ramp down Social Security. But we will be well on our way to recovery of our Free Constitutional Republic, and individual freedom and prosperity.
Not working at all gets you food, housing, transport, healthcare, 0bamaphone, pretty much everything someone can get on $60,000. Why ever work?
1) Medicare/federal "healthcare" is a no-brainer: end it NOW!!!! Medicare/federal "healthcare" is the lion's share of federal spending. And at some point, the feds pay back Medicare taxes.
2) Social Security is more problematic. It is unconstitutional but since many rely on it for their financial survival, it should be gradually ramped down.
3) End the balance of unconstitutional federal spending and agencies NOW!!!
Do this and most of the problem is solved. The only thing left is how to humanely ramp down Social Security. But we will be well on our way to recovery of our Free Constitutional Republic, and individual freedom and prosperity.
That is the Road to Serfdom the Left with their mostly unconstitutional federal gov't wants America to be on...
2) Social Security is more problematic. It is unconstitutional but since many rely on it for their financial survival, it should be gradually ramped down. Even though what I paid into gradually went up, can I at least get some of my money back?
I’ve always thought that those in Section 8 housing should be allowed to have a savings account designated for a home down payment.
No, not all would want to have a plan to leave government housing, but many would. But, nope. Saving money is not allowed. If you have a decent amount of funds in a savings account, you no longer qualify for government housing.
later
And don't earn over $100,000 either.
Never put the crumb crunchers in daycare.
There many assumptions that do not apply to many individuals or families.
That should be the idea.
Actually since we would be saving taxpayers $3+ TRILLION per year, I think payback should be in the mix.
Lord, make it happen, in Jesus name, Amen.
This is why I agree with the term “safety NET”. It is a net that ensnares you and doesn’t want to let you go. Of course, anyone talking about getting rid of them are “evil enemies of poor people”. They should be a “safety cushion” that expire, or at least diminish over time.
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