Americans should stay on welfare unless they can jump to the upper-middle class

Americans should stay on welfare unless they can jump to the upper-middle class. By Philip Greenspun.

The U.S. is also a great place to live if you’re poor. You’re entitled to a lifetime of free housing, free health care, free food, and free smartphone. …

What if you’re on welfare and want to give up some of your 168 hours per week of leisure time to work? According to a post by Greg Mankiw, an economics professor at Harvard, you’ll face a 76 percent marginal income tax rate unless you can vault beyond the middle quintile of income.

Similar throughout the West. The welfare and taxation policies are usually not coordinated, greatly diminishing the incentive to work at lower income levels. Government policies should ensure that your marginal income tax rate does not exceed 50% at any point on the income curve, so you always have an incentive to work.

hat-tip Matthew