Benefits

The income gap in the US is far too wide and getting wider. Most of the discussion revolves around increasing taxes on the rich and increasing public assistance on the poor. Another possibility is to look at the situation from the standpoint of a working person. Take the case of a single mom with two kids working full time at Walmart. Her wage is $18 per hour plus benefits. As head of household, she qualifies for $4,500 earned income tax credit, $4,500 child tax credit and $3,000 childcare credit. Her total income is $50,000. If her salary were $25 per hour instead of $18, she could pay for all these benefits without having to rely on public assistance. She owes no income tax but does pay $3,800 in payroll tax. The government could pass a law exempting the first $50,000 from payroll tax and she would have $50,000 take home pay. In this way she understands that she is paying her own way and not dependent on government aid.