Washington, District of Benefit Cliffs | American Enterprise Institute aei.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from aei.org Daily Mail and Mail on Sunday newspapers.
Some workers are forced to turn down a raise to avoid losing eligibility for public assistance benefits or they may receive a pay hike that doesn’t compensate for the lost benefits. These benefit cliffs have widespread effects.
Welfare benefits are much more available to low-income parents if they avoid getting married. A low-income single mother can lose valuable earned-income tax credits just by marrying a low-income man she otherwise would have been willing to marry. And she can gain valuable tax benefits just by getting divorced. These penalties for getting or staying married are referred to as the "marriage tax."