HappySqurriel on 13 December 2011
| Baalzamon said: The fact that they no money is completely their own fault though. I honestly don't feel sorry for anybody out there that makes $40,000 a year and doesn't budget to save any of their money, yet people with $20,000 a year income get by just fine. |
I'll try to find the article I was reading but I've read that, after you account for taxes and wealth transfers, in many States there is little difference between the true income of households earning nearly $50,000 per year and those earning $20,000 per year. Effectively, as people's income increases the increase in taxes and decrease in available governmental aid eliminates most of the benefit they get from earning more. It may seem a little outrageous at first but when you add up programs like Food Stamps with rental subsidies, healthcare programs and other handouts from the government and then combine that with the difference in taxes the true difference in income (probably) isn't that large.
