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California’s Welfare Trap

Regular hotline readers know that we at CTUP are pushing a return to work requirements for welfare. Few states punish work and reward welfare as much as California. Max Ghenis of the liberal group Policy Engine finds that if a single parent of two in California earns $10k, they take home $38k. If they earn $50k, they take home $49k. That’s a 73% marginal tax rate over a $40,000 earnings range. And that’s without childcare and housing subsidies!

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