My Life Is a Lie [“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.”]

yesigiveafig.com ^ | November 30, 2025 | Michael W. Green

[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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TOPICS: Miscellaneous
KEYWORDS:

[dljordan]

You’re being farmed.

[volare737]

Welcome to “means testing”…..a fancy, politically correct phrase for “Socialism Light”.

[VeniVidiVici]

mooooo

[fruser1]

That’s the idea- an artificially imposed financial glass ceiling.

Progressive income tax rates have a comparable effect.

Government should not be in the charity business.

[volare737]

Exactly. “Means testing” is the liberals’ favorite method of wealth redistribution.

[jacknhoo]

Plus you don’t any of the payouts like stimulus checks nor the tariff refund, etc.
Despite being the ones paying for those who do get them.

[kawhill]

“Let’s look at the transition for a family in New Jersey”. Yeah, I’ve been there several times, West Orange, don’t wish to go back.

[Paladin2]

Taxes are unaffordable for the taxpayers.

[Verginius Rufus]

What about someone who has healthcare coverage through his employer and has no children? Does he lose “benefits” that offset any gains by virtue of earning more money? (Of course inflation eats up most of any gains.)

[Pikachu_Dad]

Now run it for the democrats ideal family: ie DIVORCED !

The State has total control.

One parent has temporary primary custody (as long as the State is happy with them)

The other parent is paying the equivalent of State and Federal taxes to the other parent.

Payments are mandated and must continue, even if income levels decrease.

[Karoo]

income tax is taxing your work! Does that make sense?

[MGunny]

The OT O used to work was taxed at 42 percent. Criminal!

[Paul R.]

Then there is the whole student financial aid scam...

[NorthMountain]

When you run the net-income numbers, a family earning $100,000 is effectively supporting a family earning %40,000. Cease to be a welfare recipient and you immediately become a welfare provider. Socialism is grand when you're eating with Other Peoples' Money. Until you run out of Other Peoples' Money.

[lgjhn23]

Very few; very, very few, working-class people are “allowed” to become truly independently wealthy.
The whole system is rigged against the working class from becoming truly wealthy; from subsidies to taxes. It’s all one a big beautiful diabolical scam.
The working-class is basically a slave to the poor and to the rich...all administered by the government and by design. Sure, they’ll let Joe Six Pack have maybe a fishing boat, TV and a pickup truck, but real money? No way.
Read: “The Creature from Jekyll Island” and that’s just for starters.
“Keep your nose clean, get an education, put your shoulder to the wheel, work hard and you will make it.”, they said. Biggest damn lie ever told short of the one Satan himself told Eve in the garden.

[Brian Griffin]

What could be done is take welfare benefits from:
1. your Social Security account,
2. ten times as much from any legal settlement or award
less amounts paid for medical costs, repairs and prepaid attorney fees,
3. any legal award/settlement amount above $20,000 times the life expectancy in years of the person injured.

[Malsua]

I had a decent 6 figure income with my corporate job and the 75 year old company got wrecked by Covid. In early 21, I left for my 2nd home in Florida and did part time work, some other local stuff. The company was bought out and folded into another one in 2024. I saw the writing on the wall before that though. Now it’s completely gone.

I started my own business as a Home Inspector here in Fl and now going into my 4th year, I’m pretty much only eligible for ACA health care plans at 58.

There is a benefit cliff you hit at about 43k in income. If I declare my actual expected income, the plans I get are about $1100/month and a 10k deductible before anything is paid. Yeah, about 22k/year.

If I only make 42k a year? I get offered a plan for about $200/month with a $700 annual deductible. The plan is 1443B Florida Blue silver. Cheap drugs, $5 primary care etc.

Add 1k more income? Back to pure garbage bronze plan. It’s insane.

So, I guess I can have healthcare or I can have income. Unless I really push hard and get well back into 6 figures, I’m in the negative, exactly as this article states.

Turns out though...I can use a self 401k plan and just bank all the extra income to reduce my MAGI, so that’s what I’ll have to do.

I can then take a loan out against the 401k and spend that money. I just have to pay it off, or wait until I’m old enough and just default on my loan to myself.

The system is garbage, for sure. I’m just glad I was able to retire with enough money that I don’t HAVE to work, I just want to travel and such, so working pays for toys.

[dfwgator]

Been saying it for years. When you subtract all the extra costs from having both parents working, it pretty much wipes out most of that second income.

[Paul R.]

The setup appears to be an incentive for “successful” people to be childless, but the slaves can have kids.