Welfare Reform - Democratic view
Welfare Redesign
The Republican Policy
By Lacey Sampson
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Order of Payments: Current
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Citizens pay FICA taxes
Federal Government redistributes tax revenue to States
States distribute tax revenue to citizens currently on welfare programs
Citizens receive payment
Social Security Check
SNAP card reload
Medicaid
Other Transfer Payment
Order of Payments: Welfare Redesign
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Citizens pay welfare tax to their state
State redistributes tax revenue to citizens in need
Citizens receive payment
Social Security Check
SNAP card reload
Medicaid
Other Transfer Payment
Proposed Welfare Redesign Highlights
States implement collection of Welfare Taxes based off the needs of their citizens.
Gives the States power to ensure eligibility and follow up with each recipient as often as possible.
Takes out the “middle man” for collection and redistribution
Federal budget can cut the cost of the programs
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The Current Welfare Program is Outdated
The dependency on the federal welfare programs has not grown immensely. However, with inflation, the cost of these programs has grown substantially.
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Schedule for Welfare Redesigned
States will have 2 years for designing their program
States will have 3 years until they must begin collecting and allocating taxes for the program
States will have 5 years until all of their citizens must be transition into the State funded program
States will receive supplemental funding for 7 years from the date of the Welfare Redesigned program begins
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Citation
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Graph
USDA. “Transfer Payments” Timothy Parker. October 2014. Web. May 6, 2016. <http://www.ers.usda.gov/topics/rural-economy-population/rural-poverty-well-being/transfer-payments.aspx>