Government assistance programs can pay more annually than most people’s salaries, according to a new report.
The Committee to Unleash Prosperity, a nonprofit organization founded by economists, analyzed how unemployment benefits and Affordable Care Act (ACA), or ObamaCare, subsidies compare to employed people’s salaries. They found that in many states, most people would actually receive more on welfare programs than from their jobs.
According to their report, with “existing unemployment benefits and the dramatic recent expansion of ObamaCare subsidies, a spouse would have to earn more than $80,000 a year from a 40 hour a week job to have the same after-tax income as certain families with two unemployed spouses receiving government benefits. In these states, working 40 hours a week and earning $20 an hour would mean a slight REDUCTION in income compared to two parents receiving unemployment benefits and health care subsidies.”
“In 24 states, unemployment benefits and [Affordable Care Act (ACA)] subsidies for a family of four with both parents not working are the annualized equivalent of at least the national median household income,” the report found. “In 5 states, those two programs provide the same family with both parents not working the annualized equivalent of at least the national median household income and benefits.”
“In 14 states, unemployment benefits and ACA subsidies are the equivalent to a head of household earning $80,000 in salary, plus health insurance benefits,” the report said, noting that the figure is a higher wage than the median salary of secondary school teachers, electricians, truckers, machinists, and many other jobs.
In fact, in most states, “unemployment benefits and ACA subsidies exceed the value of the salary and benefits of the average firefighter, truck driver, machinist, or retail associate in those states.”
“In a dozen states, unemployment benefits and ACA subsidies exceed the value of the salary and benefits of the average teacher, construction worker, or electrician in those states,” the report added. “A family of four with income over $227,000 qualifies for ACA subsidies in all states and families earning over $300,000 a year still qualify for ACA subsidies in 40 states and DC.”
