Why should anyone work for just $1 an hour? the opponents to the government’s plans to work-test sickness beneficiaries are asking.
The answer is: is the abatement rates which impose a high marginal tax on extra income for all beneficiaries.
But if the benefit isn’t abated, beneficiaries would get more for part time work than some others would for fulltime work and that’s definitely neither fair nor right.
The problem isn’t that beneficiaries are working for just $1 an hour, it’s that they aren’t working for all the other dollars they get.
There are good reasons why some people need a benefit temporarily. There are good reasons why a few people will need a benefit permanently.
But getting those who are able to work in to work, albeit part time, is better than leaving them to do nothing on a benefit.
Working isn’t just about the money you earn, it’s about satisfaction, standing on your own feet, and requiring less from the public purse which frees up money for those who need it more.
It’s unfortunate but unavoidable that some beneficiaries may find they’re only $1 an hour better off than they would be if they weren’t working. But they won’t be working for only $1 an hour.
They’ll be working for all the dollars the taxpayer gives them plus the $1 an hour.
That’s better for them, better for the economy and better for society.