EVERY government program surely has its abusers. The Family Consumption Allowance (Prebate) will be no different, but one needs to measure it against the question “Will it be more or less corrupting to ambition and productivity in society than the existing system?
Here are four common sense ways to conclude for yourself that the Prebate is not welfare:
1. Everyone receives it.
By definition, welfare takes from each according to their means and gives to each according to their need. The prebate goes to every American. One cannot say it goes to everyone in the country, because it does not go to those in the country illegally. Prebate applies to those under American tax jurisdiction and with few exceptions, is not issued to people from other tax jurisdictions whether they reside in their country or ours.
2. It’s reimbursement not subsidy.
The Prebate money is not a payment but an advance reimbursement. In nearly every case the money will be back in our treasury by the end of the month. Subsidies will be left to other government programs if that’s what the people’s representatives choose to do.
3. It’s robust.
Welfare goes hand in hand with cheating. It will be exceptionally difficult to cheat the Prebate program
because of its simplicity.
4. It discourages dependency.
Welfare de-incentivizes escape from the welfare system. The Prebate on the other hand makes people
less reliant on the government as the US economy improves.