A system like this exists in many countries already, except it's framed differently; in my own country, if you're below a certain income level, you are entitled to stipends to help pay for rent, health insurance, child (day) care and probably some other things. It's a socialist support system, and it's framed in a way that doesn't make 'the rich' feel like they are paying 'the poor'.

Of course, there's a huge administrative overhead involved as well, plus there's a big case going on now of people falsely being accused of defrauding the system because some department got rewarded for finding fraudsters, or whatever the issue was. It financially ruined many people because they went from getting a bit of money to help make ends meet, to getting charged €30,000 or more in back pay and fines.