The bottom line is that I just did the payroll and after tax witholding
and despite the higher gross income, my more skilled employee took home
exactly $10 more than the employee on public assistance... And besides
monthly assistance (money taken from her co-worker) the person on
welfare will receive an income tax credit with a check from the US
gov't at the end of the year...

Am I the only person who sees the system as being broken?

No, you're not. I've been telling everyone who listen this for years.

I am in the middle of paying quarterly taxes for our corporation, and
am so disgusted with how much of our income vanishes that I can hardly
breathe.

These taxes include:

- 5% of every penny we collect goes to the state, right off the top
- 7% of every penny we collect goes to the county
- Quarterly "Workforce Development" (AKA: Unemployment) Tax to Iowa
- Quarterly Federal Unemployment Tax to D.C.
- State income tax to Iowa

These don't include the monthly taxes:

- Federal payroll deduction
- Federal Medicare
- Federal Social Security
- Property tax to Iowa City

ALL of this money just vanishes. We don't even get our snow plowed,
because the road between our two buildings is considered a "private"
road (yet the city banned parking on it), and I haven't seen a street
sweeper out front since last spring.

Then you read about something like your employee's situation, and you
just want to cry. All that money is being sucked from the person who
worked hard, went to school, and found themselves a skilled position --
just so it can be spoon-fed to the person who didn't.

Meanwhile, I can't give my employees a raise -- because all of our
damned money is going to the GOVERNMENT. It's ridiculous, it's
criminal, and it's GOT to stop.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"