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VAUGHN v. SULLIVAN

No. 95-3719.

83 F.3d 907 (1996)

Karen VAUGHN, et al., Plaintiffs-Appellants, v. Cheryl SULLIVAN, et al., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided May 14, 1996.

Attorney(s) appearing for the Case

Kenneth J. Falk (argued), Julie E. Bennett, Legal Services Organization of Indiana, Inc., Indianapolis, IN, for Karen Vaughn, Matthew Ravin.

Pamela Carter, Jon B. Laramore, Meredith J. Mann (argued), Office of the Attorney General, Indianapolis, IN, for Cheryl Sullivan, Indiana Family & Social Services Admin.

Before FLAUM, EASTERBROOK, and MANION, Circuit Judges.

EASTERBROOK, Circuit Judge.

Means-tested public assistance programs place a tax on earnings. Not a direct tax, after the fashion of the Internal Revenue Code, but an indirect one. Greater earnings yield less assistance. This is what it means to say that a program is means-tested, with benefits concentrated on persons with lower incomes or wealth. At what rate should extra earnings reduce the levels of assistance? If every dollar of earnings reduces public assistance...

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