Government Assistance | GatewayJobs.com

ith the passage of welfare reform in 1996, Americans signaled their desire to promote work rather than dependence. But as with many laudable efforts, there were unintended consequences. However much we might wish otherwise, there is an inevitable connection between low skills and low wages. Employers will pay artificially inflated wages to low-skilled adults only so long.

The natural consequence of a minimum wage increase is that employers will replace low-skill adults by hiring those with skills to match the wages they are forced to pay—locking low-skill employees out of the gateway jobs critical to their future economic health.

Policymakers must create and support programs that bridge the gap between wages and skill levels. Programs such as the Earned Income Tax Credit (EITC) and food stamps provide essential tax-free income and in-kind benefits to low-skill employees—allowing them to secure employment, increase their skill level, and work their way towards self-sufficiency.

Unlike traditional assistance programs, policies such as the EITC and the Work Opportunity Tax Credit (WOTC) actually increase the earnings of participants (independent of the actual credit). Studies show that this increased work effort will lead to significant wage growth in the future. It is essential that both employers and employees be informed of the numerous benefits they qualify for. Utilization rates for government programs are low, meaning that millions of American fail to receive the benefits for which they qualify.

Gatewayjobs.com provides information to potential beneficiaries regarding who qualifies and who to contact for more information regarding these programs.

Wage-Based Tax Credit | Federal EITC | State EITC
Food Stamps | Section 8 | Work Opportunity Tax Credit | Job Training