Earned Income Tax Credit A situation in which assistance is given to people who are working (albeit for a lower wage) is a much better situation than assistanc

Earned Income Tax Credit A situation in which assistance is given to people who are working (albeit for a lower wage) is a much better situation than assistance being given to people who aren't working at all. There is value in enabling people to have jobs, even low paying jobs. Many workplace laws and regulations effectively increase the cost of labor in the aggregate. So "decreasing the cost of labor" is not all about lowering pay. Think of things like overtime rules, mandatory benefits, onerous compliance rules, shifting various legal burdens to the employer rather than the employee, making it more difficult to fire someone.