Taxing The Poor

Brief Analyses | Taxes | Welfare

No. 174
Thursday, September 14, 1995
by Bruce Bartlett

When people on welfare earn income, they face two types of penalties. Not only do they have to pay taxes on their earnings, but they have their welfare benefits reduced as well. This reduction in benefits is a de facto tax, because it reduces their net income the same way direct taxes do.

For complete article: ba174.pdf


Read Article as PDF