IS TAX-WELFARE CHURNING REALLY A PROBLEM?
Four lines of reasoning challenge the validity of Saunders’ case against tax-welfare churning. The first is that tax-welfare churning only restricts the independence of individuals if we define self-reliance as the ability to exercise choice in the private market. The problem with this narrow conception of self-reliance is that an individual who relies on the market for protection from potential social risks is not necessarily more independent than an individual who depends on the state—both rely on others for their well-being, whether it be on the state, the market, or for that matter, the family (Goodin 1988, p. 343). Since people who rely on social welfare and private welfare services depend on others, the ability of individuals to choose between public and private sources of welfare will increase their options, but may not provide them with greater independence. Although the idea of choice is inherently tied up with the ideal of self-reliance, ‘choice’ does not hold the moral imper
