Today, Andy joined Stuart Varney to discuss the proposal by Newark Mayor Ras Baraka to test the feasibility of a universal basic income for his city. Andy notes that this is not the answer to lifting people out of poverty and argues that the best way to help low-income Americans is through the earned income tax credit (EITC).
When Stuart notes that the EITC is the most corrupt of any federal program, Andy says, “It needs to be revised, it needs to be improved, it needs to be protected against fraud. But, last year, the program lifted 6 million people out of poverty, including 3 million children. It improved the financial situation for an additional 19 million, 17 million of them children and it encourages work, it doesn’t discourage work.”
Next, when Stuart countered with points against the earned income tax credit program, Andy explained that with the EITC program, as you earn more, you take more home. In the current welfare system, those collecting aid can lose SNAP benefits, Medicare and Section 8 housing if they work more. “With the earned income tax credit, that doesn’t happen. As you earn more money…you don’t take home less. What happens with the welfare system we have now… you earned more… but you make less money. With the earned income tax credit… you always take home more as you earn more. I think that encourages people to take entry-level jobs,” says Andy.
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