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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (530604)	11/19/2009 9:54:29 PM
From: TimF	2 Recommendations Respond to of 1575761

More detail can be found here mises.org Now, I can't speak for Virginians, but in Texas there is a big difference in lifestyle between a family of 3 making $20k and one making $40k. TX doesn't have a state personnel income tax, which improves things a bit for the people in Texas, but all the other factors still apply. The lack of state income tax would make a noticeable difference but not an enormous one. Perhaps the people you know are not taking advantage of all the possible subsidies and benefits they are entitled to. The calculation assumes you don't leave that money on the table. If you aren't taking all the benefits that phase out as your income increases, then an increase in your pay does translate in to actual higher post tax, benefits included income. Another point would be that a family making $40k, on the average would be more intelligent and/or responsible than the $20k family. They might spend their money better, and generally not get themselves in to as many bad situations. They also probably have a better credit rating and pay less on what they borrow.

To: combjelly who wrote (530604)	11/20/2009 4:53:33 AM
From: Joe NYC	1 Recommendation Respond to of 1575761

This is yet another one of those highly theoretical posts that Tim specializes in. If this post is to be believed, you have to accept that in the state of Virginia for a family of 3, there are many cases where people making more money are actually worse off than those making less. Didn't you stop and think what a wretched system that is if this is even theoretically true? True, majority of people are not experts at gaming the system. They apply for - and therefore receive less then 100% of benefits they are eligible for. But that's a dumb way of legislating - designing a system that completely removes the incentive to work more for people skilled at gaming the system... ObamaCare continues in the same tradition of dumb legislating - further removing incentives to work more (and lose insurance subsidies).