Another thing: if the job pays just enough to disqualify you from state-run healthcare (medicaid, etc), but not enough to pay out-of-pocket for health insurance, the only logical step for many is to not work.
This is especially the case for part-time jobs which do not provide healthcare.
Means testing in social services is such a terrible idea. It creates nothing but perverse incentives like you describe. Programs like food stamps should be available to everyone who wants them. I don't care if a billionaire uses food stamps, they still need to eat. If too many rich people use the program, tweak tax rates until it balances out.
It's a waste of our time to go through and double check that only those that 'deserve' a handout get one. It makes everything less efficient, creates bad incentives, and builds a social stigma around the programs. ("Oh, that program is only for really poor people. I'm not really poor, so I shouldn't use it.")
> tweak tax rates until it balances out.
that just makes the whole system inefficient - the rich pay a bunch of taxes, then try to obtain all of those benefits for having paid those taxes to try even it back out.
So why not just tax less, and let them spend the money directly?
Countless trillions stashed in offshore tax havens in Andorra, Anguilla, Antigua, Aruba, Bahamas, Barbados, Belize, Bermuda, Brunei, BVI, Cayman Islands, Cook Islands, Costa Rica, Cyprus, Denmark, Dominica, Dubai, Gibraltar, Grenada, Guernsey, Hong Kong, Isle of Man, Jersey, Labuan, Liberia, Liechtenstein, Luxembourg, Marshall Islands, Mauritius, Monaco, Montserrat, Nevis, New Zealand, Panama, Seychelles, Singapore, St. Vincent, St. Kitts, Switzerland, Turks and Caicos and Vanuatu seem to indicate that spending into the economy isn't something that the wealthy like to do.
Because not everyone has enough money to feed themselves in the US. Start from a position that everyone should have food assistance available if they want or need it.
I’d rather an inefficient system than one with holes in it. Better someone getting aid who doesn’t need it than someone not getting aid who does need it.
Doesn’t this just become a mini-UBI for food budgets?