You are pretending that TANF is the only form of public assistance. However there is:
- tax deductions that go up based on number of children you have. This benefit is linear, but marginal cost of raising additional children is not, so that it encourages having more children.
- refundable tax credits like so-called Earned Income Tax Credit and Child Tax credit. EITC has very low amounts and limits for singles, but they increase substantially as you add children. For example, a single person making mere $15k would not be eligible for any EITC but a single mother of 3 earning the same would get over $6k in EITC. That credit (as well as the separate child tax credit) is "refundable" meaning that if tax liability is less than amount of credits, she gets the money anyway, which gives her an effective negative tax rate. In this case, the single mother of 3 would have $0 federal tax liability, so just through EITC she would have effective -41% tax rate just due to EITC. Child tax credit would add $3,000 to her total take, making her effective tax rate -61%! That is tantamount to cash assistance even if it is not TANF.
- food stamps
- housing assistance, section 8 etc.
You guys do know that what is called welfare is NOT a real life version of the 1970s movie CLAUDINE?
Not familiar with that movie. What is it about? A welfare queen?