Low-Wage = Welfare? More Evidence of the Conservatives' Campaign

Friday, April 14, 2006 | Margy's Blog & Updates

In this editorial, entitled “Welfare by Another Name”, Investor’s Business Daily urges Republicans to “slow the growth of the Earned Income Tax Credit right now”. This editorial is the latest salvo in the conservatives’ campaign to end public funding of work supports for low-wage employers and workers. See Avoiding the Welfare Trap , (March 4, 2006). The editorial’s author offers the now familiar argument that low-wage workers are the new welfare recipients. “Here’s what the politicians don’t tell you as they pat themselves on the back for supposedly reforming the welfare system: Twenty-six percent of the population receives benefits from EITC. That compares with 18% from Medicaid, 8% from food stamps, 5% from HUD, 3% from Supplemental Security Income and 2% from Temporary Assistance for Needy Families (formerly Aid to Families with Dependent Children, or cash). The EITC provides recipients up to $4,300 a year in cash. This costs taxpayers who don’t participate in it $35 billion annually. The program is among the federal government’s fastest growing. It has surged 170% since former President Clinton first expanded it in 1993. It’s also one of the most abused and defrauded programs. As much as 30% — or well over $10 billion — in EITC benefits are wrongly claimed each year. A large share of immigrants take advantage of EITC. The refund is also based on family size. Even illegal aliens sometimes receive it…. Claimants get advance payments against future EITC refunds. They are also encouraged by the IRS to apply for food stamps and other welfare.” We need to halt this campaign now, by sharing our narrative about the positive role these government services play in a healthier economy.

Be the first to rate this post

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5

Tags: