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Seeing as the level of money given is supposed to be just enough to live on.. then putting income tax on them just means the 'dole' has to be increased so the gov can tax them.
(V): I think Bernice's point was that those on the dole are not contributing to society yet are consuming the benefits. Many of these folks are in situations that warrant the help. Others are leeches. And there are plenty of those leeches around - those who could work, but don't. They have plenty of excuses that excuses wont' pay the bills.