Obama likes to talk about 'Income Inequality', citing recent studies that show that there is increasing 'income disparity' and the 'poor' are being devastated, but is this really true? While every case is different, let's look at some very typical examples – Comparing an average family of 4 making the current median family income of $50,000 per year with an average family of 4 making the current minimum wage of $15,080 per year – AFTER including government assistance to the poor;
A family making $50,000 will have to pay $7,395 for income/payroll taxes, plus $13,800 in health care expenses (Net Obamacare Silver Plan cost after subsidy + out of pocket) for a net spendable income of $28,805 per year = $2,400 per month.
A family making minimum wage of $15,080 per year would pay $1,151 for payroll taxes, but would get EIC and Child Credits of $7,372 per year plus EBT of $6,276 and Cash Aid of about $6,000 for a net spendable income of $33,547 per year = $2,796 per month. They get 'free' Medicaid.
In other words, the family making minimum wage has almost $400 more money to spend each month than a family making $50,000 per year.
In fact, a family earning minimum wage and only working part time (30 hours per week) will still have $350 more per month to spend than the family making $50,000 per year.
How outrageous is that? So when we make comparisons, let's make sure that we include the value of 'free' welfare benefits for the 'poor' that are already being provided.
And here is something that will REALLY SHOCK YOU -
A family of 4 does not actually even have to work to collect benefits – They can sit around the house all day watching Oprah and just CLAIM they 'earn' $12,000 per year from 'selling cookies', or 'panhandling', and still qualify for a net of $36,000 per year in 'free benefits'. The government has no way to verify such income, and won't even try.
Note – This does not count other possible low income credits/subsidies for utilities and rent, free kids school breakfast and lunch, bus passes, education grants, no fee programs for the poor, etc., and some items can vary a little depending upon the home State (I used California because I live there).