Why do housing vouchers better address the housing problems of the poor than an EITC increase?
Because housing vouchers are not limited to those with earnings, they can help address the housing problems of the elderly and people with disabilities that will not benefit from a housing supplement to the EITC. (Among those excluded from an EITC-based benefit are families with children headed by a person who is elderly or has disabilities, who now make up 9 percent of the households receiving housing vouchers.) For those in the labor force, housing vouchers act as a safety net: When income decreases because of the loss of a job or cut in work hours, the subsidy amount increases so that the rent is paid. In contrast, the EITC is designed primarily as a work incentive, so benefits typically increase for the working poor as earnings increase and decline if earnings are reduced due to fewer months or hours of work. Housing vouchers also are a better anti-homelessness tool than an EITC housing supplement. An individual or family can get a voucher when they are unable to work or work stead
