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No more than any other form of public assistance, and probably much less. You can make the same argument for food or cash assistance programs too. With other p
by jnordwick 10y ago
No more than any other form of public assistance, and probably much less. You can make the same argument for food or cash assistance programs too.
With other programs the worker would be discouraged from looking for a higher paying job or pushing for a raise. He's disincentivized, along with his employer, from being paid more.
With the EITC he directly incentivized to look for a better paying job, work more hours, or get a raise.
While not perfect, it is far better than other forms of public assistance. It about as good as you get with a welfare program in terms of aligning motivations and interests.