That is not the case. A lot of the benefits the government provides also have income limitations that phase out.
Ex. Section 8 housing vouchers, CHIP (Children's Health Insurance Program), subsidized child care, among other.
Put together there are many cases where someone is better off earning less but receiving more benefits. In the cited example a single mom will earn the same net income whether she earns $29k gross or $69k gross.
Even if that was true, it's irrelevant; the subject is saving vs. spending. If you are going to bring out well-worn right-wing anti-welfare propaganda points with citations direct to propaganda mills like AEI, at least try to do do when it is on topic.
Ex. Section 8 housing vouchers, CHIP (Children's Health Insurance Program), subsidized child care, among other.
Put together there are many cases where someone is better off earning less but receiving more benefits. In the cited example a single mom will earn the same net income whether she earns $29k gross or $69k gross.
(See the bottom of the document) http://johnhcochrane.blogspot.com/2012/11/taxes-and-cliffs.h...
http://www.aei.org/files/2012/07/11/-alexander-presentation_...