Re: AltInst: Welfare Reform Proposal

From: Bob Gebelein <>
Date: Mon Jun 22 1998 - 19:53:17 PDT

I like my system better: Every person is guaranteed an income at the
poverty level, say $6000 for a head of household and $2000 per other
member of the household. This money is Welfare and Social Security and
unemployment insurance. Then for every dollar earned, you pay 40% tax.

People who want to live at the poverty level can do so, and receive a
check every year from the government (or apportioned throughout the
year -- details can be worked out).

People who don't want to live at the poverty level are motivated to
earn money. At 2.5 times the poverty level, one starts paying tax.
(If you earn $15,000, your tax is $6,000, offset by the $6,000 you
would get as head of household.) People in the highest tax brackets
would pay a little more tax than they do now.

This solves the problem of people getting off welfare. You wouldn't
lose your welfare if you earned a couple of dollars. You wouldn't
lose it completely until you were making 2.5 times the poverty level.

This solves the problem of administering different systems, like
Social Security and Welfare and Unemployment Compensation. It is all
done through the mechanism of the Income Tax (or refund).

This would balance the budget.

I am sure people more knowledgeable will nit-pick this idea. I ask you,
if you are more knowledgeable, first to think about this idea, and
then help work out the details to make it work.

-- Bob Gebelein

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Received on Tue Jun 23 03:37:50 1998

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