{"id":12905,"date":"2024-02-14T16:47:24","date_gmt":"2024-02-14T16:47:24","guid":{"rendered":"http:\/\/lonecandle.com\/?p=12905"},"modified":"2024-02-14T16:47:24","modified_gmt":"2024-02-14T16:47:24","slug":"20-percent-of-welfare-spending-goes-to-the-households-taxed-to-fund-it","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=12905","title":{"rendered":"20 Percent of Welfare Spending Goes to the Households Taxed To Fund It"},"content":{"rendered":"\n<p>\n\n&#8220;About one in every five dollars that passes through the federal welfare system ends up right back where it started, according to a&nbsp;<a href=\"https:\/\/manhattan.institute\/article\/netting-taxes-and-transfers-to-u-s-households\" target=\"_blank\" rel=\"noreferrer noopener\">new report<\/a>.<\/p>\n\n\n\n<p>It&#8217;s not robbing Peter to pay Paul. It&#8217;s more like &#8220;robbing Peter to pay Peter,&#8221; wrote the report&#8217;s author, Judge Glock, director of research at the Manhattan Institute.<\/p>\n\n\n\n<p>As the federal welfare state has grown to a point where many middle-class and even some upper-income households receive benefits, it has become more common for the same households to both pay federal taxes and collect federal transfer payments. Glock&#8217;s&nbsp;<a href=\"https:\/\/manhattan.institute\/article\/netting-taxes-and-transfers-to-u-s-households\" target=\"_blank\" rel=\"noreferrer noopener\">paper<\/a>&nbsp;shows how significant that overlap is: About 20 percent of the annual funds in the federal welfare system are simply returned to households that paid that amount in federal taxes.&#8221;<\/p>\n\n\n\n<p>&#8230;<\/p>\n\n\n\n<p>&#8220;Dollars returned in the form of welfare transfers are often restricted\u2014food stamps can only be used for certain purchases, for example\u2014in ways that dollars never taxed away from someone&#8217;s paycheck aren&#8217;t. Or the funds might only be available at certain times of the year, as is the case with welfare delivered&nbsp;<a href=\"https:\/\/reason.com\/2021\/05\/13\/stop-using-the-irs-to-subsidize-parenting\/\" target=\"_blank\" rel=\"noreferrer noopener\">via refundable tax credits<\/a>.&nbsp;There&#8217;s also the cost of cycling that money through the system: paying for the IRS to collect it and various bureaucrats in other places to oversee its return.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-embed-wordpress wp-block-embed is-type-wp-embed is-provider-reason-com\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"EoWruA3hLZ\"><a href=\"https:\/\/reason.com\/2024\/01\/18\/20-percent-of-welfare-spending-goes-to-the-households-taxed-to-fund-it\/\">20 Percent of Welfare Spending Goes to the Households Taxed To Fund It<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;20 Percent of Welfare Spending Goes to the Households Taxed To Fund It&#8221; &#8212; Reason.com\" src=\"https:\/\/reason.com\/2024\/01\/18\/20-percent-of-welfare-spending-goes-to-the-households-taxed-to-fund-it\/embed\/#?secret=evCK6gubto#?secret=EoWruA3hLZ\" data-secret=\"EoWruA3hLZ\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;About one in every five dollars that passes through the federal welfare system ends up right back where it started, according to a new report.<br \/>\nIt&#8217;s not robbing Peter to pay Paul. It&#8217;s more like &#8220;robbing Peter to pay Peter,&#8221; wrote the report&#8217;s author, Judge Glock, director of research at the Manhattan Institute.<\/p>\n<p>As the federal welfare state has grown to a point where many middle-class and even some upper-income households receive benefits, it has become more common for the same households to both pay federal taxes and collect federal transfer payments. Glock&#8217;s paper shows how significant that overlap is: About 20 percent of the annual funds in the federal welfare system are simply returned to households that paid that amount in federal taxes.&#8221;<\/p>\n<p>&#8230;<\/p>\n<p>&#8220;Dollars returned in the form of welfare transfers are often restricted\u2014food stamps can only be used for certain purchases, for example\u2014in ways that dollars never taxed away from someone&#8217;s paycheck aren&#8217;t. Or the funds might only be available at certain times of the year, as is the case with welfare delivered via refundable tax credits. There&#8217;s also the cost of cycling that money through the system: paying for the IRS to collect it and various bureaucrats in other places to oversee its return.&#8221;<\/p>\n<p>https:\/\/reason.com\/2024\/01\/18\/20-percent-of-welfare-spending-goes-to-the-households-taxed-to-fund-it\/<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[674,141,150],"class_list":["post-12905","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-entitlements","tag-taxes","tag-welfare"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/12905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12905"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/12905\/revisions"}],"predecessor-version":[{"id":12906,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/12905\/revisions\/12906"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}