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by dragonwriter
3338 days ago
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> but I think the EITC uniquely incentivizes those in the program to work themselves out of it, unlike other programs No, it doesn't, it incentives them to work their way into the middle of it. Once you're there, like other means-tested programs, it mitigates market incentives to further progress by reducing benefits with increasing outside income, reducing the marginal utility of each additional dollar of income. Now, it may be that it empowers people enough that the increase in the ability to move up outweighs the incentive mitigation at the top end of the range, and that it is in that way more effective than some other programs. But, it's incenitved have the same failings criticized by UBI advocates as other means-tested benefit programs. |
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