Thomas E. Petri: “it is a shame and a scandal that many anti-poverty programs actually keep people poor by making it too expensive for…”

“it is a shame and a scandal that many anti-poverty programs actually keep people poor by making it too expensive for them to work their way out of poverty. Our many anti-poverty programs were individually designed without regard for each other and without regard for the fact that if several benefits phase out simultaneously a poor person who works hard may find himself or herself worse off than if he or she stayed home or had done the minimum necessary to maintain the maximum level of benefits. I call this the poverty trap. Able-bodied people will work their way out of poverty if they can clearly see the benefit. Accordingly, today I am introducing the Poverty Trap Study Act, to create a commission to examine the way benefit phase-outs and tax increases can sap the incentive of poor beneficiaries. It is a hard problem to tackle, but we must get started. This is an issue that liberals, conservatives, and moderates should all find of compelling importance, and I solicit my colleagues' support.”