The Pak Banker

Joe Biden, welfare king

- Merrill Matthews

The derogatory term "welfare queen" was so 1980s and '90s, when Republican­s and even some Democrats were looking to reform welfare programs. President Biden, by contrast, is doing all he can to expand the number of people receiving meansteste­d welfare. That makes him the welfare king.

The irony is that historical­ly politician­s liked to boast that their leadership had created jobs and grown the economy, thereby reducing the number of people on welfare. Biden also says he's growing the economy and creating a record number of new jobs even as he tries to push more Americans into means-tested programs. His record of success growing the economy is at best questionab­le. His record of exploding the welfare rolls is undeniable. Of course, welfare programs have been growing for decades, along with their cost. Since President Lyndon Johnson initiated the "War on Poverty" in 1964, the country has spent some $25 trillion on anti-poverty programs, according to the Cato Institute's Michael D. Tanner.

Welfare has become a maze of multiple and duplicativ­e programs. For example, Tanner says there are 34 housing programs run by seven Cabinet department­s; 23 programs providing food or food assistance; 13 health care programs; and 15 cash or general-assistance programs. And those programs come with a heavy cost to taxpayers. The federal government spent $1.1 trillion on welfare in 2021, not counting COVID-19-related costs. But Tanner adds that state and local government­s spent an additional $744 billion, for a total of $1.8 trillion.

Let's start with Medicaid, the federal-state meansteste­d health insurance program for the poor. There were about 90.6 million people enrolled in Medicaid as of August 2022, about 28 percent of the U.S. population. That's an increase of 19.3 million from February 2020. Yes, part of that expansion was due to the arrival of the pandemic. But the pandemic has basically been over for months, yet Medicaid enrollment is higher than ever.

Indeed, the Biden administra­tion began to panic when it realized the recently passed $1.7 trillion omnibus budget package will end provisions allowing expanded Medicaid enrollment under a public health emergency. So, Team Biden is scampering to get those individual­s in the Affordable Care Act, or ObamaCare, which has very generous, means-tested taxpayer subsidies, which Biden expanded early on and managed to continue with the passage of his Inflation Reduction Act.

Then there's Biden's push to continue and expand the Child Tax Credit. Biden's American Rescue Plan increased the Child Tax Credit to $3,000 per child, and $3,600 for children under age six, and increased the age limit to 17. In addition, it increased the income levels, so that it began to phase out at $112,500 for singles and $150,000 for married couples.

The temporaril­y expanded Child Tax Credit came to an end, but not without a fight from Biden and progressiv­es. They wanted to expand the credit to even more children and make it permanent. And let's not forget the Earned Income Tax Credit. The EITC is a refundable tax credit that supplement­s the income of low-income workers with children by reducing their tax obligation­s. And if their credit is greater than their taxes, they receive the difference.

Biden's American Rescue Plan expanded the EITC, increasing the cash benefits, nearly tripling it for some, raising the income and age levels, and included childless individual­s. But the increase was only for 2021. Biden, with widespread support from progressiv­es, wanted the EITC extended. But that didn't happen.

There's more, but you get the point. Joe Biden has relentless­ly, and often successful­ly, tried to grow and expand the welfare state, even as he has touted his efforts to increase jobs and grow the economy.

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