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- r <br /> Family B does, however, have some costs that Family A does not. Family B would have <br /> to pay for health insurance for the adult (presuming the company does not provide a <br /> y. health plan) and Federal taxes on wages. These Federal taxes would equal 7.65 percent <br /> Jt <br /> of earned income, or $835. Family B also would have to pay sales taxes on its food <br /> purchases, while purchases made with food stamps are exempt from taxation under <br /> Federal law. Family B would pay $99 more in sales taxes on food than Family A. <br /> Family B, until new changes in State tax law take effect, will pay $31 in State income <br /> taxes as well. <br /> However, Family B also qualifies for the Federal earned income tax credit, which <br /> equalled $2528 in 1994. The EITC more than compensates for the Federal and State <br /> p3`. <br />' revenues lost to taxation. <br /> The table below shows that the family with a full-time worker receives more in income <br /> and benefits than the family without a worker. The working family has access to over <br /> $13,700 in income and benefits, while the typical nonworking family has access to less <br /> than $10,000. However, the working family will also incur other expenses related to <br /> work, such as transportation, work clothing and child care, that the nonworking family <br /> may not have to pay. Some working families will also have to pay for health care <br /> benefits, or choose to remain uninsured. <br /> Family A (no work) Family B (low-income worker) <br /> Government Benefits: <br /> AFDC $3264 $0 <br /> Food Stamps $3000 $1356 <br /> Medicaid $3312 $1590 <br /> �r <br /> Earned Income $0 $10,920 <br /> Taxes <br /> Fed Payroll Taxes $0 ($835) <br /> Fed EITC $0 $2528 <br /> State Income Tax $0 ($31) <br /> Sales Tax on Food $0 ($99) <br /> Costs <br /> Health Insurance $0 ($1722) <br /> TOTAL INCOME $9,576 $13,705 <br /> Average Per Hour $4.60 w/o Benefits $6.60 w/o benefits <br />