Basic Economics - here is why California is broke! Let me explain…
By Daniel at 6 December, 2009, 7:56 pm
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
There
are two families. Joe Legal and Jose Illegal - Both families have two
parents, two children, and they live in California.
Joe Legal works in construction, has a Social Security number, and makes
$25.00 per hour with payroll taxes deducted - Jose Illegal also works
construction, has NO Social Security number and gets paid $15.00 cash per
hour “under the table.”
Joe Legal - $25.00 per hour x 40 hours = $1000.00 per week or $52,000 per
year minus 30% away for state and federal taxes… Joe Legal now has
$31,231.00 per year.
Jose Illegal - $15.00 per hour x 40 hours = $600.00 per week or $31,200 per
year. Jose Illegal pays NO taxes out of his illegal $31,200.00 per year
salary.
Joe Legal pays Medical and Dental Insurance with limited coverage $1000.00
per month (in California) or $12,000 per year. Joe Legal now has $19,231.00.
Jose Illegal has full Medical and Dental coverage through the State of
California and Local ‘City of Angels’ (L.A) Health Clinics at an annual cost
of $0.00 per year. Jose Illegal still has his $31,200.00 yearly salary.
Joe Legal makes too much money is therefore NOT eligible for Food Stamps or
Welfare, so he pays for food at around $1,000.00 per month or $12,000 per
year. Joe Legal now has $7,231.00.
Jose Illegal has no documented income therefore, he is eligible for Food
Stamps and various forms of Welfare. Jose Illegal still has his $31,200.00
(Cha-Ching!).
Joe Legal pays also has a house payment of $1,000.00 per month or $12,000.00
per year and he is now in the hole to the tune of (-) $4,769.00.
Since Jose Illegal… Remember, has no documented income… He also receives
a $500 per month Federal Rent Subsidy - this subsidy pays his rent at
$500.00 per month or $6,000.00 per year - he still has $31,200.00 in his
pocket.
Joe Legal sees this happening and realizes he has to figure out some way to
make ends meet or he is going to lose his house - so… He now works as much
overtime as he can. He finds a part time job on the weekends and evenings.
Jose Illegal has nights and weekends off to enjoy with his family. Joe
Legal’s and Jose Illegal’s children both attend the same school. Joe Legal
pays for his children’s lunches while Jose Illegal’s children get a
government sponsored breakfast and lunch.
Jose Illegal’s children have an after school ESL program. Joe Legal’s
children go home after school. Joe Legal and Jose Illegal both enjoy the
same Police and Fire Protection Services, but Joe Legal paid for them and
Jose Illegal did not.
Joe Legal must repay educational loans for his children to go to college -
Jose Illegal does not. Therefore Joe Legal cannot afford to send his
children to College - JoseILLegal can!
California taxpayers (like Joe Legal) pay for all of Jose Illegal’s stuff.
That totals over $42,000 in this example. So Jose Illegal has his $31,200
plus at least $42,000 of value received each year or the equivalent of
$73,200 after tax income. Joe Legal is struggling and Jose Illegal leads a
pretty good life.
And Voila - California is now broke, busted, and disgusted. And now, you and
I will bail them out.
- RedPill
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.