Original sentence: Being rational actors, many calculate how much they need to earn to maximize their return from the government.In this case, the household's entitlement check exceeds actual taxes paid by that household.The Fair Tax subsidy has no cap on earnings, thus it eliminates this disincentive and encourages progression.The checks are given to all legal residents.The entitlement check pays all that back up to the poverty level, in 12 monthly payments of about $182.The lowest effective tax rate under FairTax can be negative due to the subsidy checks.Thus it eliminates any disincentive toward reducing workload to earn more income.Under the FairTax, households receive monthly entitlement checks equal to the estimated dollar amount of FairTax paid by similar households on the purchase of household necessities.With most welfare programs today, subsidies are awarded by income level
Edited sentence: Being rational actors, the poor calculate how much they need to earn to maximize their free return from the government.In this case, the households's entitlement check exceeds actual taxes paid by that household.Instead it provides a great incentive to work harder.The Fair Tax prebate has no cap on earnings, thus it eliminates this disincentive.The lowest effective tax rate under FairTax can be negative due to the prebate checks.The prebate pays all that back up to the poverty level, in 12 monthly payments of about $182.This prebate is given to all members of society, poor to rich.Thus it eliminates any disincentive toward reducing ones workload to earn more money.Thus the poor are considerably better off under this system, while the more wealthy have not been hurt by the taxation, making the FairTax highly progressive.Under FairTax, households receive monthly prebate checks equal to the estimated dollar amount of FairTax paid by similar households on the purchase of household necessities.What you earn you keep, and the government still sends you a prebate check to cover the costs of basic necessities.With most welfare programs today, subsidies are awarded by how much someone earns