Thank you for a response to my actual post.
I understand what you are saying, and have understood that.
To be clearer: how will Bob ever come off programs? He will always be stuck making just below the limit for programs, unless he somehow can make a HUGE leap (programs for a family of 6 or more people) from just below the limit plus programs to making enough to cover the spread.
How is Bob not stuck on programs?
The more income you make, gradually your benefits get cut. There is no HUGE leap. By the time you get close to the income limits, you are hardly making any money on benefits.
There factually is no huge leap!
There used to be a huge health insurance leap (even though that was also somewhat gradual, first the father {and mother when not pregnant} lost it, then the mother and children lost it) but now with Obamacare, health insurance is also gradual. (Maybe not enough, but we're discussing FS here)
And EIC is capped at 3 children either way.
There is an argument to be made that programs make people not work. But it has nothing to do with family size.