What we need to have done is completely re-write the Earned Income Credit. Many people on assistance will often work a small part time job during the year, earn about $10,000. Lets say a person made $10,000 last year, has 3 qualifying children for the EIC, according to the IRS website, that individual is currently eligible to receive $4,510 back in taxes. Obviously the person making $10,000 is not paying almost 50% of their pay in taxes, which means these individuals are being paid by the government to have children. This big payday does not even include the child tax credit that they would also be eligible for which is $1000 per kid. $7,510 back in taxes for only working a part time job. Thats a 70% bonus from the government, not counting the amount of money welfare and food stamps costs.
http://apps.irs.gov/app/eitc2012/CalculateAgiExpense.do
While I am sure these programs were put into place to help individuals through tough times, there are too many people that take advantage of the system and live off of government assistance programs. I myself could not live like that, nor would I want others to. Some people don't want to work jobs tho. The other argument is because of the cost of day care and babysitters that its more financially sound to stay at home with the kids and live off the system than hand 80%+ of their paycheck over to a daycare. Instead of how the current earned income program is set up, it could be more useful to have a daycare credit instead. Of course some people will complain that the result is someone else raising their kids, which is understandable.
Considering that so many ppl want new jobs in the US, the government should provide incentives for companies to create new telecommuter jobs so many more individuals can get online jobs. If more online jobs are available, many more stay at home mothers and fathers will have an opportunity for employment and there will be less people that need public assistance.