Actually, despite all the talk of taking other people's money, I'm not opposed to the EITC. It's not a social welfare handout, as are TANF and food stamps. When administered appropriately, the EITC encourages work and self-sufficiency. According to the Hoover Institution:
Protecting the long-term viability of this program is important for three reasons. First, the EITC significantly increases the fiscal resources available to working poor families. The program rewards labor earnings with a 40 percent match up to the first $10,000 in earnings (see figure 2). In many cases, EITC benefits are enough to raise a family above the poverty level. Second, the EITC encourages people to choose work over welfare. The program has built-in work incentives, especially at the lowest income levels, which encourage families to attain self-sufficiency. Some studies have shown that the increased availability of the EITC and more generous benefits helped contribute to the decline in welfare recipients after passage of the 1996 welfare reform act (accounting for as much as 20–30 percent of the decline in caseloads).The key is the encouragement of workforce participation. If conservatives criticize dependency, the EITC should serve as a reasonable avenue to help the poor --- with the ultimate goal of increasing family earnings to obviate the need for the tax credit over time.
RELATED: At The Orlando Sentinel, "Earned-income tax credit: Ignorance is not bliss."
BONUS: From Reihan Salam, at National Review, "Thinking Through the Consequences of Welfare Reform."
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