Instead of exempting things (which snowballs into a incomprehensible tax code like the one we have now), every new item and service is taxed, one-time at the final retail sale. Every household receives a pre-bate check based on household size. My house with 2 adults and one kid would get $478/month to cover taxes paid on the basic necessities. These calculations are based on Federal Poverty Guidelines as published by the Department of Health & Human Services (DHHS).
What's interesting about 2010 is that it's the first year since 1965 that the average annual Consumer Price Index actually decreased in one year. That's bad news for our poverty levels because, with a lower CPI, it means we can buy more with less money! Seems kind of backwards compared to the inflation we're seeing in today's market.
Rather than lower the poverty level, thus resulting in fewer being covered, the Federal government will have to re-create the formula so that our government dependents don't loose their perks! Congressional explanatory language calls this a "reduction in eligibility".
What's interesting about 2010 is that it's the first year since 1965 that the average annual Consumer Price Index actually decreased in one year. That's bad news for our poverty levels because, with a lower CPI, it means we can buy more with less money! Seems kind of backwards compared to the inflation we're seeing in today's market.
Rather than lower the poverty level, thus resulting in fewer being covered, the Federal government will have to re-create the formula so that our government dependents don't loose their perks! Congressional explanatory language calls this a "reduction in eligibility".
In a normal economy and a typical America, this would be a great thing! Less people are eligible for government welfare programs should also mean that more people are eligible for work.
But not in this economy nor this administration... jobs are tough to come by and our Federal Government's goal is to have as many people as possible on government assistance or working for the government (if you take a "public service" job, the government will pay off your student loans!!). So, we'll change the rules, even though the economy has shown us that it's trying to come back. Our math used since 1965 says "IT'S TIME TO GET OFF THE POVERTY TRAIN", but no stops here. Just re-do the equation and the moochers can keep their benefits.
I'm looking forward to hearing the new analysis set to debut on March 1, 2010.
I thought public assistance was to be used for a short period of time...but with these changes, it appears that some individuals will be using it till the day they die. Very sad. -Kathy Lang
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