The conservative economist in California argues that income taxes aren’t the only way for the government to take your money, even for poor folks: "Despite all the political rhetoric today about how taxes won’t be
raised except on 'the rich,' inflation transfers a percentage of
everybody’s wealth to a government that expands the money supply. Moreover, inflation takes the same percentage from the poorest person in
the country as it does from the richest. That’s not all. Income taxes only transfer money from your current
income to the government, but they do not touch whatever money you may
have saved over the years. With inflation, the government takes the same
cut out of both."
Dr. Sowell continues: "The biggest and most deadly 'tax' rate on the poor comes from a loss
of various welfare-state benefits — food stamps, housing subsidies, and
the like — if their income goes up. Someone who is trying to climb out of poverty by working their way up
can easily reach a point where a $10,000 increase in pay can cost them
$15,000 in lost benefits that they no longer qualify for. That amounts
to a marginal tax rate of 150 percent — far more than millionaires pay.
Some government policies help some people at the expense of other
people. But some policies can hurt welfare recipients, the taxpayers,
and others, all at the same time, although in different ways."
Thomas Sowell Op-Ed: Taxing The Poor
