Welfare should be considered taxable income

Regardless, there are three main points to consider.1. There is little or no effect for these individuals who are truly needy. Con actually made this point by stating that these people have no taxable income. If this is true, then there would be little to no additional taxes owed by these individuals by taxing their welfare. Additionally, there are tax credits that also help these people, so even if there is taxable income, these individuals will likely not pay the taxman one dime.2. “Skin in the game”In case you did not know, welfare is based on a household’s expenses, not their income per se. There are thresholds for income to qualify, but expenses affect the amount of welfare received (at least for EBT in MN). Because choices can be made that increase welfare AND quality of life, these funds should be considered income. So, the truly needy are living modestly off the government, while paying no taxes. However, we have people that choose to seek welfare instead of using their wealth or cutting their expenses [3]. If people want to keep their house and their possessions and go on welfare, they should pay taxes on it. Is it fair that if my cable bill rises, I may cancel because I can’t afford it, but if one is on welfare, they may get MORE benefits? These benefits should be taxed as if they were ordinary income, because these people (and those that abuse/defraud welfare) are maintaining, possibly even improving, their quality of life. We also have people that live “high on the hog” on welfare. Not to say these people live like kings, but they live comfortably given their financial situation, receiving thousands in benefits per month. Why is it too much to ask that they pay taxes to help others out too, and maintain the system that has helped them out so much? In short, those that are “getting by” pay no taxes due to their circumstances, but those that are living like the rest of us should be paying taxes, like the rest of us. By having skin in the game, they may miraculously suddenly have an opinion on the amount of fraud that occurs, or waste in the government, or how that money is spent. 3. Fairness and equality under the law. It is unfair and unequal for income from the government to aid the needy to not be taxed, but if I give money to the needy directly, it is taxed. In fact, if I give more than the allowable annual gift, I also have to pay the gift tax for the donee, because a gift of that magnitude ($13,000) is considered income [1]. Either way, because there is no deduction for these direct payments, income taxes are paid on this “welfare”, sometimes even twice. Furthermore, take medical expenses. If I am without insurance and go to the hospital and do not pay, they will (after quite some time) write off the debt. When they do this, I will receive a 1099-C, saying there was a cancelation of debt and this is considered taxable income. Why is it legal to tax me on medical services I could not afford, yet those who cannot afford their own bills are not taxed on those very same services? Other sources of income that are taxed (to be paid by someone) are: alimony, child support, gifts (like giving a bum some cash or buying a poor neighbor’s kids presents for Christmas), gains from illegal activities, losses on hobbies, any cancellation of debt, Christmas bonuses, gambling winnings, charity raffle winnings, and various others [2]. Why is child support from an estranged father taxable (to the father), alimony is taxable to the spouse who receives it, but support from the state is not taxed? How is this equality under the law? Now, if Con is going to counter with “Government is a non-profit, and thus an exception is made”. Non-profit charities’ payments to others are not taxed, and neither are any contributions. Let’s explore that. The following government payments may be taxable: social security, interest from U. S. and municipal bonds, unemployment benefits, jury duty pay, and rewards (e. g. FBI or IRS whistleblower) [2]. These aid programs are taxed, so why not welfare? Furthermore, while a contribution to a charity is not taxed (but direct giving is…), the following expenses may be considered taxable income to the recipient: scholarships, wages paid (some charities like Goodwill specifically hire “undesirable” people), prizes and “thank-you gifts”, and income from anything given that produces income. But since we are dealing with the government’s welfare payments, this is food for thought.1. . http://www.irs.gov...2. . http://www.irs.gov...3. . http://www.heritage.org...