Current Events > Taxpayers subsidize McDonalds to not properly pay their employees

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WingsOfGood 12/22/20 12:59:48 AM #1:	https://www.salon.com/2020/12/12/government-study-shows-taxpayers-are-subsidizing-starvation-wages-at-mcdonalds-walmart/ Millions of Americans employed at some of the country's largest companies have had to rely on food stamps and Medicaid, with giants like Walmart and McDonald's employing the most workers whose income is subsidized by taxpayers, according to a new study. The Government Accountability Office, a nonpartisan congressional watchdog, released a study commissioned by Sen. Bernie Sanders, I-Vt., last month based on data provided by 11 states. The report found that, in every state studied, Walmart was one of the top four employers whose workers rely on food stamps and Medicaid. McDonald's is among the most subsidized employers in at least nine states. Walmart employs about 14,500 workers in Arkansas, Georgia, Indiana, Maine, Massachusetts, Nebraska, North Carolina, Tennessee and Washington who rely on Supplemental Nutrition Assistance Program (SNAP) benefits, the study showed, while McDonald's employs about 8,780 SNAP recipients in those states. https://www.reddit.com/r/politics/comments/kho5xl/government_study_shows_taxpayers_are_subsidizing/ Yep, for McDonalds tax purposes I was listed as a full time employee, but I never worked a full 40, Id be sent home early and barely get 30 hours a week. Edit: Oh ya, it was in 05-06 and I was homeless at the time, ended up quitting because I didnt make enough to even get into an apartment. It was easier and far less stressful to just go back to panhandling. I had an employer make sure I worked a half hour short of enough time to get full benefits. These companies know the game and help make the rules. The only reason to have $15/hr hard coded into law is so it wont change for another 40 years The study found that the average frontline fast-food worker earns just $8.69 per hour and that about 87% of them did not receive health benefits, leaving them to "rely on taxpayer-funded safety net programs to make ends meet." <cite>WingsOfGood posted [p:948627084] in Taxpayers ... [t:79192032]...</cite> <quote>https://www.salon.com/2020/12/12/government-study-shows-taxpayers-are-subsidizing-starvation-wages-at-mcdonalds-walmart/ <quote>Millions of Americans employed at some of the country's largest companies have had to rely on food stamps and Medicaid, with giants like Walmart and McDonald's employing the most workers whose income is subsidized by taxpayers, according to a new study. The Government Accountability Office, a nonpartisan congressional watchdog, released a study commissioned by Sen. Bernie Sanders, I-Vt., last month based on data provided by 11 states. The report found that, in every state studied, Walmart was one of the top four employers whose workers rely on food stamps and Medicaid. McDonald's is among the most subsidized employers in at least nine states. Walmart employs about 14,500 workers in Arkansas, Georgia, Indiana, Maine, Massachusetts, Nebraska, North Carolina, Tennessee and Washington who rely on Supplemental Nutrition Assistance Program (SNAP) benefits, the study showed, while McDonald's employs about 8,780 SNAP recipients in those states.</quote> https://www.reddit.com/r/politics/comments/kho5xl/government_study_shows_taxpayers_are_subsidizing/ <quote>Yep, for McDonalds tax purposes I was listed as a full time employee, but I never worked a full 40, Id be sent home early and barely get 30 hours a week. Edit: Oh ya, it was in 05-06 and I was homeless at the time, ended up quitting because I didnt make enough to even get into an apartment. It was easier and far less stressful to just go back to panhandling. I had an employer make sure I worked a half hour short of enough time to get full benefits. These companies know the game and help make the rules. The only reason to have $15/hr hard coded into law is so it wont change for another 40 years</quote> The study found that the average frontline fast-food worker earns just $8.69 per hour and that about 87% of them did not receive health benefits, leaving them to "rely on taxpayer-funded safety net programs to make ends meet." </quote> ... Copied to Clipboard!
WingsOfGood 12/22/20 8:32:51 AM #2:	Bump <cite>WingsOfGood posted [p:948632870] in Taxpayers ... [t:79192032]...</cite> <quote>Bump </quote> ... Copied to Clipboard!
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Questionmarktarius 12/22/20 8:44:46 AM #4:	Would you rather benefits just end once you get a shitty job. Welfare cliffs are bad. <cite>Questionmarktarius posted [p:948633079] in Taxpayers ... [t:79192032]...</cite> <quote>Would you rather benefits just end once you get a shitty job. Welfare cliffs are bad. </quote> ... Copied to Clipboard!
WingsOfGood 12/22/20 8:52:19 AM #5:	Questionmarktarius posted... Would you rather benefits just end once you get a shitty job. Welfare cliffs are bad. You are saying McDonalds is helping them by not giving them 40 hours a week? <cite>WingsOfGood posted [p:948633210] in Taxpayers ... [t:79192032]...</cite> <quote>Questionmarktarius posted... </cite> <quote>Would you rather benefits just end once you get a shitty job. Welfare cliffs are bad. </quote> You are saying McDonalds is helping them by not giving them 40 hours a week? </quote> ... Copied to Clipboard!
Questionmarktarius 12/22/20 8:53:24 AM #6:	WingsOfGood posted... You are saying McDonalds is helping them by not giving them 40 hours a week? So long as there's a financial incentive to have a wall at 39 hours, there will be one. <cite>Questionmarktarius posted [p:948633238] in Taxpayers ... [t:79192032]...</cite> <quote>WingsOfGood posted... </cite> <quote>You are saying McDonalds is helping them by not giving them 40 hours a week?</quote>So long as there's a financial incentive to have a wall at 39 hours, there will be one. </quote> ... Copied to Clipboard!
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Questionmarktarius 12/22/20 8:54:28 AM #8:	shockthemonkey posted... No Im saying that companies should have to pay living wages Who defines that? <cite>Questionmarktarius posted [p:948633265] in Taxpayers ... [t:79192032]...</cite> <quote>shockthemonkey posted... </cite> <quote>No Im saying that companies should have to pay living wages</quote>Who defines that? </quote> ... Copied to Clipboard!
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Broseph_Stalin 12/22/20 8:59:41 AM #10:	Claiming social safety nets subsidize corporations is an incredibly stupid take https://www.reddit.com/r/badeconomics/comments/8t442t/are_welfare_programs_employer_subsidies_op_says/ <cite>Broseph_Stalin posted [p:948633370] in Taxpayers ... [t:79192032]...</cite> <quote>Claiming social safety nets subsidize corporations is an incredibly stupid take https://www.reddit.com/r/badeconomics/comments/8t442t/are_welfare_programs_employer_subsidies_op_says/ </quote> ... Copied to Clipboard!
iPhone_7 12/22/20 9:00:24 AM #11:	Just because you work a job or two doesnt mean you deserve to be paid a living wage. Be grateful for what the company is giving you and pull yourself up by your bootstraps! #MAGA --- Sig User Logic https://imgur.com/lA5fm7w <cite>iPhone_7 posted [p:948633389] in Taxpayers ... [t:79192032]...</cite> <quote>Just because you work a job or two doesnt mean you deserve to be paid a living wage. Be grateful for what the company is giving you and pull yourself up by your bootstraps! #MAGA </quote> ... Copied to Clipboard!
gunplagirl 12/22/20 9:05:18 AM #12:	Questionmarktarius posted... Would you rather benefits just end once you get a shitty job. Welfare cliffs are bad. Sounds about right :'( Would be at least slightly tolerable if effing healthcare was covered by taxes. --- tfw no big tiddy goth vampire gf who lactates blood - viewmaster_pi <cite>gunplagirl posted [p:948633479] in Taxpayers ... [t:79192032]...</cite> <quote>Questionmarktarius posted... </cite> <quote>Would you rather benefits just end once you get a shitty job. Welfare cliffs are bad. </quote>Sounds about right :'( Would be at least slightly tolerable if effing healthcare was covered by taxes. </quote> ... Copied to Clipboard!
WingsOfGood 12/22/20 9:44:18 AM #13:	Broseph_Stalin posted... Claiming social safety nets subsidize corporations is an incredibly stupid take https://www.reddit.com/r/badeconomics/comments/8t442t/are_welfare_programs_employer_subsidies_op_says/ Bernie is the one saying it in the article. Who is this person you linked? <cite>WingsOfGood posted [p:948634359] in Taxpayers ... [t:79192032]...</cite> <quote>Broseph_Stalin posted... </cite> <quote>Claiming social safety nets subsidize corporations is an incredibly stupid take https://www.reddit.com/r/badeconomics/comments/8t442t/are_welfare_programs_employer_subsidies_op_says/</quote> Bernie is the one saying it in the article. Who is this person you linked? </quote> ... Copied to Clipboard!
Broseph_Stalin 12/22/20 9:48:19 AM #14:	WingsOfGood posted... Bernie is the one saying it in the article. Well then we know it's a stupid take. <cite>Broseph_Stalin posted [p:948634458] in Taxpayers ... [t:79192032]...</cite> <quote>WingsOfGood posted... </cite> <quote>Bernie is the one saying it in the article.</quote> Well then we know it's a stupid take. </quote> ... Copied to Clipboard!
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WingsOfGood 12/22/20 9:52:39 AM #16:	Broseph_Stalin posted... Well then we know it's a stupid take. That makes no sense. Why do you want to be taxed to pay for these people's healthcare when McDonalds should be doing that and has enough money to do so? <cite>WingsOfGood posted [p:948634566] in Taxpayers ... [t:79192032]...</cite> <quote>Broseph_Stalin posted... </cite> <quote>Well then we know it's a stupid take.</quote> That makes no sense. Why do you want to be taxed to pay for these people's healthcare when McDonalds should be doing that and has enough money to do so? </quote> ... Copied to Clipboard!
Questionmarktarius 12/22/20 9:55:14 AM #17:	Broseph_Stalin posted... Claiming social safety nets subsidize corporations is an incredibly stupid take Not really no, it's just not explicitly doing so. While some single dude living in a crappy apartment with three other dudes and eating beans and ramen is making a "living wage" flipping burgers, a single parent with three kids will not. Should we expect someone to be able to raise a family on a single McIncome? <cite>Questionmarktarius posted [p:948634626] in Taxpayers ... [t:79192032]...</cite> <quote>Broseph_Stalin posted... </cite> <quote>Claiming social safety nets subsidize corporations is an incredibly stupid take</quote>Not really no, it's just not explicitly doing so. While some single dude living in a crappy apartment with three other dudes and eating beans and ramen is making a "living wage" flipping burgers, a single parent with three kids will not. Should we expect someone to be able to raise a family on a single McIncome? </quote> ... Copied to Clipboard!
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Broseph_Stalin 12/22/20 10:00:28 AM #19:	WingsOfGood posted... That makes no sense. To you. WingsOfGood posted... Why do you want to be taxed to pay for these people's healthcare when McDonalds should be doing that and has enough money to do so? Well first of all, social safety nets are a perfectly good thing to spend tax revenue on in my opinion. But your statement is wrong. McDonalds does not pay an arbitrarily low wage and similarly the government wouldn't be able to force them into paying an arbitrarily high wage. That's not how it works! <cite>Broseph_Stalin posted [p:948634751] in Taxpayers ... [t:79192032]...</cite> <quote>WingsOfGood posted... </cite> <quote>That makes no sense.</quote> To you. WingsOfGood posted... </cite> <quote>Why do you want to be taxed to pay for these people's healthcare when McDonalds should be doing that and has enough money to do so?</quote> Well first of all, social safety nets are a perfectly good thing to spend tax revenue on in my opinion. But your statement is wrong. McDonalds does not pay an arbitrarily low wage and similarly the government wouldn't be able to force them into paying an arbitrarily high wage. That's not how it works! </quote> ... Copied to Clipboard!
WingsOfGood 12/22/20 10:02:18 AM #20:	Broseph_Stalin posted... To you. Well first of all, social safety nets are a perfectly good thing to spend tax revenue on in my opinion. But your statement is wrong. McDonalds does not pay an arbitrarily low wage and similarly the government wouldn't be able to force them into paying an arbitrarily high wage. That's not how it works! You appparently didn't read. McD doesn't want to pay for health benefits so they short the employees hours even though said employee is full time. This makes McD profit and you as the tax payer pay for that person healthcare. <cite>WingsOfGood posted [p:948634788] in Taxpayers ... [t:79192032]...</cite> <quote>Broseph_Stalin posted... </cite> <quote>To you. Well first of all, social safety nets are a perfectly good thing to spend tax revenue on in my opinion. But your statement is wrong. McDonalds does not pay an arbitrarily low wage and similarly the government wouldn't be able to force them into paying an arbitrarily high wage. That's not how it works!</quote> You appparently didn't read. McD doesn't want to pay for health benefits so they short the employees hours even though said employee is full time. This makes McD profit and you as the tax payer pay for that person healthcare. </quote> ... Copied to Clipboard!
MorbidFaithless 12/22/20 10:02:20 AM #21:	AssultTank posted... I know when I worked in restaurants, we often had people who wanted to come in and work 1-2 days a week only just because if they didn't work, they lost their benefits, and if they worked too much they lost their benefits... We couldn't pay every employee 60k a year (slightly less than 30 per hour) without significant menu price increases, and we were riding the line of profitability as it was... Some months we operated in the red, others in the black, and even when we had to increase prices 10 cents due to product costs going up from the supplier, we suffered huge backlash from the customers. So what's the answer? Wage slavery or a smaller bottom line? --- walk like thunder <cite>MorbidFaithless posted [p:948634790] in Taxpayers ... [t:79192032]...</cite> <quote>AssultTank posted... </cite> <quote>I know when I worked in restaurants, we often had people who wanted to come in and work 1-2 days a week only just because if they didn't work, they lost their benefits, and if they worked too much they lost their benefits... We couldn't pay every employee 60k a year (slightly less than 30 per hour) without significant menu price increases, and we were riding the line of profitability as it was... Some months we operated in the red, others in the black, and even when we had to increase prices 10 cents due to product costs going up from the supplier, we suffered huge backlash from the customers.</quote>So what's the answer? Wage slavery or a smaller bottom line? </quote> ... Copied to Clipboard!
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Hippocrates 12/22/20 10:08:13 AM #24:	"It's good people are earning poverty wages, though" I somehow knew there would be multiple people with this take before I came to this thread <cite>Hippocrates posted [p:948634934] in Taxpayers ... [t:79192032]...</cite> <quote>"It's good people are earning poverty wages, though" I somehow knew there would be multiple people with this take before I came to this thread </quote> ... Copied to Clipboard!
Broseph_Stalin 12/22/20 10:08:27 AM #25:	WingsOfGood posted... McD doesn't want to pay for health benefits so they short the employees hours even though said employee is full time. You're confusing want with can, mainly because you don't understand that wages are bounded by productivity. WingsOfGood posted... This makes McD profit and you as the tax payer pay for that person healthcare. The subsidy argument falls apart when you realize that removing social safety nets would not lead to higher wages. So what I pay in taxes is independent of what McDonalds pays in wages. <cite>Broseph_Stalin posted [p:948634944] in Taxpayers ... [t:79192032]...</cite> <quote>WingsOfGood posted... </cite> <quote>McD doesn't want to pay for health benefits so they short the employees hours even though said employee is full time.</quote> You're confusing want with can, mainly because you don't understand that wages are bounded by productivity. WingsOfGood posted... </cite> <quote>This makes McD profit and you as the tax payer pay for that person healthcare.</quote> The subsidy argument falls apart when you realize that removing social safety nets would not lead to higher wages. So what I pay in taxes is independent of what McDonalds pays in wages. </quote> ... Copied to Clipboard!
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Hippocrates 12/22/20 10:21:12 AM #28:	Tired of being told "we can't do (thing that every other developed country can manage) " <cite>Hippocrates posted [p:948635283] in Taxpayers ... [t:79192032]...</cite> <quote>Tired of being told "we can't do (thing that every other developed country can manage) " </quote> ... Copied to Clipboard!
NinjaWarrior455 12/22/20 10:22:04 AM #29:	A system which is predicated on that fact that its working employees need to be on government assistance is a shit system and needs to be fixed. If I have to pay an extra $2 for a fucking big mac then so be it --- Super Bowl 52 Champions!!!! http://myanimelist.net/animelist/NinjaWarrior457 <cite>NinjaWarrior455 posted [p:948635306] in Taxpayers ... [t:79192032]...</cite> <quote>A system which is predicated on that fact that its working employees need to be on government assistance is a shit system and needs to be fixed. If I have to pay an extra $2 for a fucking big mac then so be it </quote> ... Copied to Clipboard!
Questionmarktarius 12/22/20 10:22:58 AM #30:	NinjaWarrior455 posted... If I have to pay an extra $2 for a fucking big mac then so be it What have we solved, if everything is more expensive now? <cite>Questionmarktarius posted [p:948635331] in Taxpayers ... [t:79192032]...</cite> <quote>NinjaWarrior455 posted... </cite> <quote>If I have to pay an extra $2 for a fucking big mac then so be it</quote>What have we solved, if everything is more expensive now? </quote> ... Copied to Clipboard!
Hippocrates 12/22/20 10:23:40 AM #31:	Everything gets more expensive anyway!!! This fucking GUY <cite>Hippocrates posted [p:948635354] in Taxpayers ... [t:79192032]...</cite> <quote>Everything gets more expensive anyway!!! This fucking GUY </quote> ... Copied to Clipboard!
WingsOfGood 12/22/20 10:24:34 AM #32:	Questionmarktarius posted... What have we solved, if everything is more expensive now? McDonalds is not a necessity. What so you only eat big macs everyday and this would destroy you? <cite>WingsOfGood posted [p:948635380] in Taxpayers ... [t:79192032]...</cite> <quote>Questionmarktarius posted... </cite> <quote>What have we solved, if everything is more expensive now?</quote> McDonalds is not a necessity. What so you only eat big macs everyday and this would destroy you? </quote> ... Copied to Clipboard!
Questionmarktarius 12/22/20 10:25:19 AM #33:	WingsOfGood posted... McDonalds is not a necessity. So... you want shitty fast food to be considered a luxury item? <cite>Questionmarktarius posted [p:948635395] in Taxpayers ... [t:79192032]...</cite> <quote>WingsOfGood posted... </cite> <quote>McDonalds is not a necessity.</quote>So... you want shitty fast food to be considered a luxury item? </quote> ... Copied to Clipboard!
Broseph_Stalin 12/22/20 10:25:27 AM #34:	Hippocrates posted... Tired of being told "we can't do (thing that every other developed country can manage) " Other countries have lower wages than the US does. NinjaWarrior455 posted... A system which is predicated on that fact that its working employees need to be on government assistance is a shit system and needs to be fixed. If I have to pay an extra $2 for a fucking big mac then so be it Which would in turn reduce demand for the product and lead to fewer jobs. <cite>Broseph_Stalin posted [p:948635396] in Taxpayers ... [t:79192032]...</cite> <quote>Hippocrates posted... </cite> <quote>Tired of being told "we can't do (thing that every other developed country can manage) "</quote> Other countries have lower wages than the US does. NinjaWarrior455 posted... </cite> <quote>A system which is predicated on that fact that its working employees need to be on government assistance is a shit system and needs to be fixed. If I have to pay an extra $2 for a fucking big mac then so be it</quote> Which would in turn reduce demand for the product and lead to fewer jobs. </quote> ... Copied to Clipboard!
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Questionmarktarius 12/22/20 10:29:23 AM #37:	Broseph_Stalin posted... Other countries have lower wages than the US does. And fucktons more unemployment, especially among the "youth" segments that McJobs tend to hire. https://tradingeconomics.com/france/youth-unemployment-rate https://tradingeconomics.com/spain/youth-unemployment-rate https://tradingeconomics.com/united-kingdom/youth-unemployment-rate Germany and Switzerland have their shit together, though. What do they have going on over there? https://tradingeconomics.com/germany/youth-unemployment-rate https://tradingeconomics.com/switzerland/youth-unemployment-rate <cite>Questionmarktarius posted [p:948635514] in Taxpayers ... [t:79192032]...</cite> <quote>Broseph_Stalin posted... </cite> <quote>Other countries have lower wages than the US does.</quote>And fucktons more unemployment, especially among the "youth" segments that McJobs tend to hire. https://tradingeconomics.com/france/youth-unemployment-rate https://tradingeconomics.com/spain/youth-unemployment-rate https://tradingeconomics.com/united-kingdom/youth-unemployment-rate Germany and Switzerland have their shit together, though. What do they have going on over there? https://tradingeconomics.com/germany/youth-unemployment-rate https://tradingeconomics.com/switzerland/youth-unemployment-rate </quote> ... Copied to Clipboard!
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iPhone_7 12/22/20 1:47:04 PM #39:	Leave McDonalds alone! --- Sig User Logic https://imgur.com/lA5fm7w <cite>iPhone_7 posted [p:948641976] in Taxpayers ... [t:79192032]...</cite> <quote>Leave McDonalds alone! </quote> ... Copied to Clipboard!
David1988 12/22/20 1:51:11 PM #40:	Broseph_Stalin the best neoliberal on this board, always schoolin fools. I always thought he was Antifar's alt for some reason, would be funny if that was true --- Each night, when I go to sleep, I die. <cite>David1988 posted [p:948642118] in Taxpayers ... [t:79192032]...</cite> <quote>Broseph_Stalin the best neoliberal on this board, always schoolin fools. I always thought he was Antifar's alt for some reason, would be funny if that was true </quote> ... Copied to Clipboard!
Prismsblade 12/22/20 1:54:11 PM #41:	Damn, our benefits are so lucrative that it's no surprise just replacing it for UBI is out of the question for most people. --- 3DS FC:3368-5403-9633 Name: Kaizer PSN: Blackkaizer <cite>Prismsblade posted [p:948642238] in Taxpayers ... [t:79192032]...</cite> <quote>Damn, our benefits are so lucrative that it's no surprise just replacing it for UBI is out of the question for most people. </quote> ... Copied to Clipboard!
twitterfriends 12/22/20 1:57:31 PM #42:	Yep, think about Walmart, Amazon, McDonalds are the biggest welfare queens because their workers are so reliant on government subsidies --- #NotMyPresident #JusticeDemocrats #Neblio #WolfPAC #Bitcoin #WeAre12 #12thMan #Seahawks #Belieber #DENT #UBI #PokemonGo #twitterfriends #MMA #PopularHashtags <cite>twitterfriends posted [p:948642356] in Taxpayers ... [t:79192032]...</cite> <quote>Yep, think about Walmart, Amazon, McDonalds are the biggest welfare queens because their workers are so reliant on government subsidies </quote> ... Copied to Clipboard!
AzurexNightmare 12/22/20 2:29:12 PM #43:	--- Latest Game Completed 100% Resident Evil VII <cite>AzurexNightmare posted [p:948643367] in Taxpayers ... [t:79192032]...</cite> <quote> </quote> ... Copied to Clipboard!
darkphoenix181 12/22/20 2:32:36 PM #44:	Why do we care if a McDonalds goes under because they can't afford to pay their employees health benefits? Isn't that the point of the free market? Don't whine about huge government bailouts then says we need to subsidize McDonalds because these local franchises barely make a profit. <cite>darkphoenix181 posted [p:948643462] in Taxpayers ... [t:79192032]...</cite> <quote>Why do we care if a McDonalds goes under because they can't afford to pay their employees health benefits? Isn't that the point of the free market? Don't whine about huge government bailouts then says we need to subsidize McDonalds because these local franchises barely make a profit. </quote> ... Copied to Clipboard!
Balrog0 12/22/20 2:35:05 PM #45:	Questionmarktarius posted... Would you rather benefits just end once you get a shitty job. Welfare cliffs are bad. these charts are flawed because most of that (notably housing and child care) aren't entitlements. they're limited and first come, first served --- Trying to dunk since July 2020 <cite>Balrog0 posted [p:948643528] in Taxpayers ... [t:79192032]...</cite> <quote>Questionmarktarius posted... </cite> <quote>Would you rather benefits just end once you get a shitty job. Welfare cliffs are bad. </quote> these charts are flawed because most of that (notably housing and child care) aren't entitlements. they're limited and first come, first served </quote> ... Copied to Clipboard!
Balrog0 12/22/20 2:41:02 PM #46:	Broseph_Stalin posted... Claiming social safety nets subsidize corporations is an incredibly stupid take https://www.reddit.com/r/badeconomics/comments/8t442t/are_welfare_programs_employer_subsidies_op_says/ *Welfare program type 1*: programs offered to people with low incomes which then phase out gradually (ie, without a cliff). Example programs include SNAP, arguably social security, and (for part of its schedule) the EITC. For programs that gradually phase out benefits as income increases, within that phase out range, these programs encourage people to reduce their labor supply by effectively raising the marginal tax rate phased by the people receiving them. To the extent that people respond to these incentives, we would expect people to work fewer hours and for employers to bear some of the incidence of this marginal tax rate hike in the form of increased wages. the EITC is straightforwardly a subsidy for employers, it's well-known that they capture a share of the benefits. This analysis is very skewed though the takeaway is correct (that most social safety net programs aren't subsidies for employers) --- Trying to dunk since July 2020 <cite>Balrog0 posted [p:948643727] in Taxpayers ... [t:79192032]...</cite> <quote>Broseph_Stalin posted... </cite> <quote>Claiming social safety nets subsidize corporations is an incredibly stupid take https://www.reddit.com/r/badeconomics/comments/8t442t/are_welfare_programs_employer_subsidies_op_says/</quote> Welfare program type 1: programs offered to people with low incomes which then phase out gradually (ie, without a cliff). Example programs include SNAP, arguably social security, and (for part of its schedule) the EITC. For programs that gradually phase out benefits as income increases, within that phase out range, these programs encourage people to reduce their labor supply by effectively raising the marginal tax rate phased by the people receiving them. To the extent that people respond to these incentives, we would expect people to work fewer hours and for employers to bear some of the incidence of this marginal tax rate hike in the form of increased wages. the EITC is straightforwardly a subsidy for employers, it's well-known that they capture a share of the benefits. This analysis is very skewed though the takeaway is correct (that most social safety net programs aren't subsidies for employers) </quote> ... Copied to Clipboard!
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Current Events > Taxpayers subsidize McDonalds to not properly pay their employees