- Posted December 23, 2013 by
This iReport is part of an assignment:
Lincoln's Solution to the Economy
Abraham Lincoln has given us the perfect solution to pulling people out of poverty in his letter to John D. Johnston.
For everyone below or at the federal poverty line, have employers create a stub that is attached to the last paycheck of the month. On that stub, the total pay for that month is given.
The employee gives that stub either online or mails it in to a federal agency which in turn matches that monthly gross dollar for dollar. That additional dollar is taxable. Taxes that could be invested to make the program self-sustainable.
It also encourages spending and saving by that employee, and takes many off the poverty level that qualifies them for welfare programs, hence taking a great deal of the tax burden off the middle class.
In essence, you are encouraging those that could work, to work. Unemployment checks already do not equal regular salary pay. When you give an incentive to work by matching dollar for dollar, you are giving those that can work the incentive to do just that.
Capitalism does not work without spending. Those additional dollars would help the economy in that way to create more jobs. That creates even more wages that are taxable income that would return to the federal government in yearly taxes.
And it provides a way for the lower income level persons in society to save for retirement and increase their Social Security benefits themselves. It takes them off welfare, gives them self-respect and self-reliance, and enables them to pay for health insurance themselves.
It is a win-win solution straight from Abraham Lincoln’s mouth.