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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?


To: Peter Dierks who wrote (5920)2/3/2009 7:35:22 PM
From: TimF  Read Replies (1) | Respond to of 42652
 
One thing SCHIP does accomplish is to discourage work. SCHIP and similar programs create enormous disincentives to climb the economic ladder. A single mother of two earning minimum wage in New Mexico who increased her earnings by $30,000 would find no change in her net income: She would pay an additional $4,000 in taxes and lose $26,000 in SCHIP and other government benefits, according to data compiled by the Urban Institute for the federal government.

That's a problem with a lot of public assistance.

I know someone who's in that trap. Afraid to earn any more for fear of losing benefits and effectively being in a worse financial situation that that that existed with the smaller income.