SNAP and the earned income tax credit (EITC) are the cornerstones of the social safety net. In 2014, SNAP kept 8.4 million people, including 3.8 million children, out of poverty. Because the EITC is designed to provide benefits only when a household has an employed worker, its effectiveness is limited in times of high unemployment. On the other hand, SNAP can both support work when it is available and serve as insurance, propping up food consumption levels during periods of unemployment. A new report lays out SNAP’s benefits, the characteristics of SNAP recipients, and its effects on families and the American economy. It also proposes several ways to strengthen SNAP for the future:
- Increase the earned income deduction from 20% to 30%. This would increase monthly benefits by $40 on average, increase incentives to work, and increase food purchasing power for families with workers.
- Increase investment in the SNAP employment and training program would help states move more participants into the workforce.
- Boost federal support to help states purchase the “work number” service, which provides real-time data on employment and wages and can be used for data verification.The service may help improve fraud and error rates of other means-tested programs such as school meals.
Source: American Enterprise Institute, 11/6/17, SNAP Improvements
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