Financial
planning 101 for our elected officials - This course should be
compulsory!!!
You have 2 families: "Joe Legal" and "Jose Illegal". Both
families have
2 parents, 2 children and live in California . ( Or any other state for
that matter )
"Joe Legal" works in construction, has a Social Security Number, and
makes
$25.00 per hour with payroll taxes deducted.
"Jose Illegal" also works in construction also, has NO Social Security
Number,
and gets paid $15.00 cash "under the table" as a Day
Laborer.
Joe Legal: $25.00 per hour x 40 hours = $1000.00 per week = $52,000 per
year. Now take 30% away for state, federal tax and social security .
Joe Legal
now has $31,231.00.
Jose Illegal: $15.00 per hour x 40 hours = $600..00 per week =
$31,200.00
per year. Jose Illegal pays no taxes. Jose Illegal now has $31,200.00.
Joe Legal pays for Medical and Dental Insurance for his family out of
his pocket
because his employer doesn't offer it
due to the expense. Joe pays for
limited
coverage: $1000.00 per month = $12,000.00 per year. Joe Legal now has
$19,231.00.
Jose Illegal has full Medical and Dental coverage through the state and
local clinics
at a cost of $0.00 per year. Jose Illegal still has $31,200.00.
Joe Legal makes too much money to be eligible for Food Stamps or
Welfare so
Joe Legal pays for food: $1,000.00 per month = $12,000.00 per year.
Joe Legal
now has $7,231.00.
Jose Illegal has no documented income and is eligible for Food Stamps
and
Welfare. Jose Illegal still has $31,200.00.
Joe Legal pays rent of $1,000.00 per month = $12,000.00 per year. Joe
Legal is
now in the hole -<$4,769.00>.
Jose Illegal receives a $500 per month Federal rent subsidy, which
entirely
pays his rent of $500.00 per month = $6,000.00 per year. Jose Illegal
still
has $31,200.00.
Joe Legal now works overtime on Saturdays and gets a part time job
after
work to make ends meet.
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
free government sponsored lunches.
Joe Legal's children go home after school. Jose Illegal's children have
an
after school ESL ( English / Spanish Learning ) program which, again,
isn't
provided free of charge.
Joe
Legal and Jose Illegal both enjoy the same Police and Fire
Services, but
Joe Legal paid for them and Jose Illegal did not pay.
ARE YOU MAD YET?
You should be!
And
remember to press # 1 for English.
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