In the article, Tyler Durden of Zero Hedge discusses the grim reality that, after taxes and expenses, a family of four with a $60,000 annual income has LESS disposable income than a Head of Household of Four (stated like that because many are single parent homes) making minimum wage.
As quantitied, and explained by Alexander, "the single mom is better off
earnings gross income of $29,000 with $57,327 in net income & benefits than
to earn gross income of $69,000 with net income and benefits of
$57,045." (quote from article)
We faced this ourselves. When the girls were diagnosed with autism, we were a family of four making around $28-$32 K a year, depending on the bonus. Small company, no group health insurance but the company paid a percentage of the premiums on a personal plan. Unfortunately, no insurance provider will cover Autistic kids. So, with around $480 per girl per month in meds, we blew through our savings and my retirement funds from teaching in about two years. This is where we got desperate and where we were introduced to SSI.
The girls qualified easily and the first month's SSI checks were promptly deposited. I sat there and looked at the financial boon, sick to my stomach. All we needed was insurance, and here was over $1000 of government money plopped in our laps. We swore not to touch it until the transmission on the van went out. Shit. A few months later, the SSI payments had become a part of our budget. WE RELIED ON THOSE PAYMENTS. In just a few short months.
This year, hubby got a job that takes him back on the road, but with Platinum benefits and a substantial increase in salary. What I am ashamed to admit is the calculating we did. We would lose the SSI payments; not a problem, his new salary made up for it. We would lose the girls' Medicaid. For three years, we had paid NOTHING for doctors visits or prescriptions. Not a dime. With the new insurance, their specialists would be $50 a visit and their meds about $450 a month for both. This started eating into the new financial boon very quickly, and we started debating. Were we better off in the old job making $36K a year and collecting benefits or taking the new job and paying for everything? Sickening. Ten years ago it wouldn't have even been a question. But we had been thoroughly seduced and hooked. We had become entitlement addicts.
We took the job. It hasn't been easy; but with some negotiating with the pharmaceutical company that makes their most expensive med, I managed to cut about $200 from the monthly med bill. You make adjustments, you survive.
And this last month, I got notification from the Government that they deemed the girls had been overpaid because the new job pushed our "annual income" over the limit. We now owe the US Government $2600, payable immediately or they start garnishing his wages. Ah, now I understand why those are the scariest words to hear: We're with the government, we're here to help.
4 comments:
First of all, thank you for your honesty. Some things are hard to talk about and some are just hard to admit even to yourself.
Second, thank you for your choice.
You and your husband are adults in a childish world.
Last, thanks for your blog. I'm on vacation right now, and I read it twice a day ... my sons are grown and gone (not too far, just out of the house) so it's pretty dull - I like it for a change.
You're welcome, you're welcome, and ~blushing~ thank you for the compliment.
It's a slippery slope. Unfortunately the government keeps it well greased!
As you are well aware.
Btw, Tyler rocks! That guy is so far ahead of mainstream concerning the worlds finances.
I believe that was a quote from Ronald Reagan, "The nine most terrifying words in the English language are, 'I'm from the government and I'm here to help." Love it!
There are generations of Americans afraid to improve their economic opportunities simply because they will then lose Govt. Benefits. This should be changed so that this fear can never be realized.
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