Impact of Taxes and Spending and Poverty on each other

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Governments spend money on many things that impact poverty and the poor, and thus there is a strong correlation between the level of poverty and government budgets.  Medicaid and a variety of welfare programs, training programs, and employment subsidies are in place to help the poor survive (albeit not very far above subsistence levels, in many cases), but these things require a fair amount of government money.  Without that money, the poor would find themselves abruptly without even the modicum of support that they currently receive, and we would actually see people starving on the streets. Americans aren’t willing to allow that, so it has become a balancing act for governments at all levels:  how much can you afford to spend on the poor, and how much can you afford to not spend on the poor?

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