# What government handout programs help the middle class only? **URL:** \ **Category:** Factual Questions\ **Created:** [September 30, 2009, 2:28pm UTC](https://boards.straightdope.com/t/what-government-handout-programs-help-the-middle-class-only/512102 "2009-09-30T14:28:12Z")\ **Posts on this page:** 6\ **Page:** 2
**Author:** ![handsomeharry](https://avatars.discourse-cdn.com/v4/letter/h/e9c0ed/32.png) [@handsomeharry](https://boards.straightdope.com/u/handsomeharry)\ **Post date:** [October 1, 2009, 1:52pm UTC](https://boards.straightdope.com/t/what-government-handout-programs-help-the-middle-class-only/512102/21 "2009-10-01T13:52:44Z")
> [@BrandonR](#): > > Well yeah unless they live in a state with [no state income tax](http://en.wikipedia.org/wiki/State_income_tax). Therefore, poor people should just move to one of these states! 😉 That is totally crazy!! They should just get good jobs!:smack: ---
**Author:** ![Fubaya](https://avatars.discourse-cdn.com/v4/letter/f/c2a13f/32.png) [@Fubaya](https://boards.straightdope.com/u/Fubaya)\ **Post date:** [October 1, 2009, 3:50pm UTC](https://boards.straightdope.com/t/what-government-handout-programs-help-the-middle-class-only/512102/22 "2009-10-01T15:50:24Z")
I’m not sure if it qualifies but there is a program that is part of the stimulus act which helps people pay for child care. I’m not sure if there is a program to help poor people. In my state, there is only a privately funded program but the parents have to qualify for other government programs to be referred to it (welfare, food stamps etc). This new federal program seems to be aimed at people making around 30k - 40k per year, depending on how many kids they have. ---
**Author:** ![davekhps](https://avatars.discourse-cdn.com/v4/letter/d/a5b964/32.png) [@davekhps](https://boards.straightdope.com/u/davekhps)\ **Post date:** [October 1, 2009, 9:09pm UTC](https://boards.straightdope.com/t/what-government-handout-programs-help-the-middle-class-only/512102/23 "2009-10-01T21:09:47Z")
> [@Transistor\_Rhythm](#): > > Take it to GD if you want, but a flat tax is not “everyone paying their fair share.” Is too! ---
**Author:** ![qazwart](https://avatars.discourse-cdn.com/v4/letter/q/5fc32e/32.png) [@qazwart](https://boards.straightdope.com/u/qazwart)\ **Post date:** [October 1, 2009, 9:54pm UTC](https://boards.straightdope.com/t/what-government-handout-programs-help-the-middle-class-only/512102/24 "2009-10-01T21:54:38Z")
> [@BrandonR](#): > > Almost 70% of households making under $50k will have no tax liability for 2009: > [http://money.cnn.com/2009/09/30/pf/taxes/who\_pays\_taxes/index.htm](http://money.cnn.com/2009/09/30/pf/taxes/who_pays_taxes/index.htm) Then why do they fill out a Federal Income Tax form? Because they pay Medicare and Social Security taxes! Most people in the lower income brackets pay more for Social Security and Medicare than Federal taxes. Remember that there is a standard deduction of about $10K and then a $3300 deduction per dependent. If you make $50K and have a wife and three kids, you can take $26K right off the top of your income before you even start calculating your taxes. Most of your income is taxed at 10% and some is taxed at 15%. You pay about $2700 in taxes. Now, your Social Security is 7.65% taxed on the FULL $50,000 salary, so that’s $3,825. In other words, you’re paying more Social Security and Medicare taxes than Federal income taxes. It’s why it is so bogus when a politician talks about how fair a 20% across the board tax cut is. This guy making $50,000 would save $540 or about 1.2% of their income while someone making $400,000 (who would pay a higher tax rate, has lower percentage for deductions, and has their Social Security and Medicare taxes capped) would save almost 10% of their income. That person making $400,000 would see a big difference in their tax bill while the poor shlub making $50,000 would see almost nothing. It is also why a “flat tax” is a stupid idea. Most people would see a great increase in their tax rate while the rich would see a major decrease. The problem is when most people talk about Federal Income taxes, they’re talking about that amount on the final line of the 1040 form. That person making $50,000 would pay about $6,500 to the IRS. Yet, only a third of that is actual taxes. ---
**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\ **Post date:** [October 1, 2009, 9:59pm UTC](https://boards.straightdope.com/t/what-government-handout-programs-help-the-middle-class-only/512102/25 "2009-10-01T21:59:48Z")
> [@qazwart](#): > > It’s why it is so bogus when a politician talks about how fair a 20% across the board tax cut is. This guy making $50,000 would save $540 or about 1.2% of their income while someone making $400,000 (who would pay a higher tax rate, has lower percentage for deductions, and has their Social Security and Medicare taxes capped) would save almost 10% of their income. That person making $400,000 would see a big difference in their tax bill while the poor shlub making $50,000 would see almost nothing. Of course, that so-called “rich” person is still paying a hell of a lot more taxes than the poor guy who’s not paying his way. Just because he’s poor, he can’t support our national infrastructure? ---
**Author:** ![Fubaya](https://avatars.discourse-cdn.com/v4/letter/f/c2a13f/32.png) [@Fubaya](https://boards.straightdope.com/u/Fubaya)\ **Post date:** [October 1, 2009, 10:31pm UTC](https://boards.straightdope.com/t/what-government-handout-programs-help-the-middle-class-only/512102/26 "2009-10-01T22:31:19Z")
This flat tax talk is so interesting it should have it’s own thread… …so I could ignore it more easily. [Previous page](https://boards.straightdope.com/t/what-government-handout-programs-help-the-middle-class-only/512102.md?page=1)