Middle Class Welfare

Posted on November 30, 2011 by

Although people rage against defense spending and poverty alleviation, most of our government’s spending is actually part of the middle class welfare system (i.e. vote buying system). For instance:

Under the administration’s proposal, parents earning up to $85,000 a year would receive credit for 35 percent of their child care expenses — a credit level that, currently, is only available to parents earning less than $15,000 per year — bumping up their maximum total tax credit to $2,100.

A fact sheet released by the White House said that eligible families making up to $115,000 per year would also see an increased credit.

Yes, it’s true. My husband — and millions of other married and single men — pays other people’s wives to go to work everyday. In fact, the majority of the child care tax credit goes to the middle class. I have no problem with these women working, but I think the costs for their daytime entertainment should be shouldered exclusively by their husbands. I think that about all women actually, but it seems particularly insidious at the middle class level.

All of these middle class tax breaks need to go (yes, including the ones that I benefit from), before or concurrently to cutting the welfare for the poor. These are the only two morally-defensible options because of the preferential option for the poor. Either federal welfare programs are wrong by design, as all charity should be private, and then nobody should get them. Or they are moral and should concentrate on helping the most needy first.

In fact, it is happening the other way around. Middle class welfare is increasing while lower class welfare is decreasing. Most federal welfare goes to the middle class (64%) and large corporations, not to the poor or small businesses. The middle class people railing about “their money” going to the “undeserving poor” are way off the mark. Most of the tax transfer is from the upper class to the middle class, or within the middle class, and most middle class “taxpayers” are net-beneficiaries of the soaring stock prices caused by inflation, subsidized health care and retirement, state-supported universities, cheap gasoline, inflated house prices, and the availability of low-interest loans. The biggest welfare queens in America live in McMansions and drive brand-new SUVs.

One tax code example is the Making Work Pay tax credit, which went to those with incomes under $20k. It was scrapped to help finance the payroll tax cut which went to those with incomes over $20k. No kidding.

In Michigan (as the same effect is visible at the state level), they threw 30,000 children and 11,000 adults out on the street and cut their food stamps to save a measly $60 million, which is essentially a rounding error in the $47 billion state budget. This increased, by the state government’s own admission, childhood poverty from an already-shocking 19% to an absolutely horrendous 23%! Nearly one in four children in the state of Michigan is now living in poverty, just to save less than 0.13% of the budget. If it weren’t for subsidized school lunches and struggling food pantries, many of these children wouldn’t eat. At the same time, they gave local businesses a tax break to the tune of $1.4 billion, or almost 3%. No kidding.

As food price inflation currently runs at an annualized 6.2%, food stamps are actually being cut and inflationary policies are continued by the Fed. In fact, the Fed is rapidly expanding those policies in order to bail out the entire world. That inflation directly benefits home owners and those with retirement savings plans (as their return on investment goes up with inflation, at least in nominal terms), at the same time that it hurts renters and the many living off of fixed or falling incomes.

This is an absolutely enormous transfer of wealth from the bottom to the top, and the fact that it continues without complaint from the general populace is damning evidence of our country’s widespread moral corruption. In a country caught in the heresy of the prosperity gospel (that God grants wealth to the virtuous), poverty is seen as a sign of vice. Not only do they not complain, they even mock the poor who complain in their own defense, at the same time that they rake in federal monies. The hypocrisy, it hurts.