this post was submitted on 20 Jun 2024
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[–] [email protected] 0 points 4 months ago (3 children)

I don't believe that's actually true. I think in the USA there are a few programs that have a hard cap on income to disqualify you. Food and housing assistance related things. I'm not American so I'm not 100% sure on them but I do think there are some scenarios

[–] [email protected] 0 points 4 months ago

Oh yeah. That's absolutely the case for disability I believe. If you start to make a certain amount they just take away benefits. And the amount you have to make to lose benefits it's actually less money than what the benefits themselves are.

I know people personally who are affected by that situation.

Very good thing to point out and wasn't something I was thinking about. Thank you.

I guess it would be more accurate to say your paycheck from your job will never be less money due to making more money.

[–] [email protected] 0 points 4 months ago

I'm sure there are cases but that's effectively a $4.80 / hour raise at full time, you'd need a lot of dependants or other assistance programs to make that not worth it if you're already working full time.

[–] [email protected] 0 points 4 months ago

That's true. You'll still be making more money, but you'll also have more expenses. This doesn't apply to most people though, and for sure not ones getting a $10k raise. The progressive tax system we have only applies the tax as you progress through the levels. The first $10k will be taxed at one level, then the next bracket, then the next, etc. It's not done as one lump tax.

Different programs should be set up to slowly decrease how much you get instead of cutoff amounts. That'd remove that issue. Obviously some things are either on or off so they can't be done this way though. Ideally a lot of it should just be provided to everyone no matter what though.