• Re: Welfare programs are a tax on employers, not a subsidy to them

    From Tariffying@21:1/5 to All on Tue Apr 15 19:15:23 2025
    XPost: alt.fan.rush-limbaugh, alt.society.liberalism, alt.atheism
    XPost: alt.business, talk.politics.guns

    On 14 Apr 2025, Lou Bricano <lb@cap.con> posted some news:M3kLP.272935$D_V4.109417@fx39.iad:

    Welfare programs increase the reservation wage of potential workers (https://en.wikipedia.org/wiki/Reservation_wage).

    Suppose a low-skilled worker has a reservation wage of $20 per hour.
    He won't take a job if it pays less than $20 per hour. He values his
    leisure time, and below that wage, he figures he'd prefer to loaf on
    the couch and collect some form of welfare or scrape by some way. But
    if a job offer is made that pays him $25 per hour, he'll take it.

    Most liberals are low-skilled and lazy like that.

    Now, suppose unemployment and other welfare benefits will pay him $30
    per hour. Then a job that pays $25 per hour won't interest him. He'd
    prefer to loaf on the couch until a job offer comes along that pays
    him *more* than $30 per hour.

    The benefits are not permanent for those considered employable.

    Welfare benefits are *not* a subsidy to employers — they are a
    *tax*. They force employers to pay *more* than they otherwise would
    have to pay to induce deadbeats off their couches and into gainful employment.

    So? All employee wages, bonuses, and commissions are 100% fully tax- deductable.

    What you got wrong is who pays.

    You, Jon the taxpayer, are paying the benefits.

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