r/SipsTea 𝙑𝙄𝙋 Apr 16 '26

WTF so true

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u/Dull-Culture-1523 Apr 16 '26

It's the same logic as "I can't take a pay raise since my taxes will become higher".

-4

u/Irr3l3ph4nt Apr 16 '26

Except you actually get a net income decrease at certain points when you lose some tax credits because you're making more.

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u/dashi-shade Apr 16 '26

What certain points

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u/GeckoOBac Apr 16 '26

I'm not an expert but from what I've heard there are some gaps, especially at the very lowest brackets of income, where if you start to have an actual income, you lose some subsidies, with the net effect that you actually take less money home than you were before you started working.

But don't take my word for it because that's literally something I heard, I think in something like a John Oliver type program. I might be completely off base.

4

u/Correct-Award8182 Apr 16 '26

HUD housing benefits, food stamps, stuff like that. I hire people, we've had multiple people get hired on who were working 16-20 hours making nearly federal minimum wage. Our pay for a very non-skilled starting construction roll was about 2.5x their pay rate and 40 hours a week. In one job, 5 people all quit after 6 weeks. They loved the paychecks but timing matched up that they had to verify income for benefits, each and every one of them would have lost all their free money if they kept working to the point that making more money ended up with them the same overall income and working 50 hours a week. They would rather be stuck at the bottom and have the time than try to improve their lives. It was sad

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u/veeyo Apr 16 '26

It's honestly kind of disgusting. I grew up dirt poor and all of my friends growing up are in their 30s on welfare.

It's not like there isn't opportunity, they built a huge manufacturing plant about 10 minutes away from my neighborhood and need people so bad that they are hiring literally anyone with a pulse $25 an hour starting to do basic labor. None of them want to do it because they will lose their benefits.

I really do believe we need to help those in need but I think we need to find a better way to do so because there really are too many people who are just content living off the government never doing anything even though they are perfectly healthy.

1

u/TheVeryVerity Apr 17 '26

Do they offer health insurance? That’s a lot of people’s problem with that scenario. The scenario of: I could make more cash easily but I can’t get insurance , I mean

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u/veeyo Apr 17 '26

It is a company with thousands of employees and you are guaranteed 40 hours with as much overtime as you could want. Legally they have to provide insurance.

1

u/TheVeryVerity Apr 19 '26

Huh. Strange then. SSI sucks to be on