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January 30, 2024
How Sensitive Are Single Mothers’ Work Decisions to a Change in Incentives? Correcting Misperceptions of the Evidence
Let’s start with a table. (With apologies to our mobile audience…) Evidence on Extensive Margin Employment Elasticities for Single Mothers Reported Revised Consistent w/ 0.75? Notes Reviews or Based on Reviews Corinth et al. (2021, rev 2022) 0.75 — p. 22; based on midpoint of McClelland and Mok (2012), p. 5 (below); unpublished…
January 29, 2024
Per-Child Benefit in Wyden-Smith Child Tax Credit Bill Would Discourage Full-Time Work for Families with Multiple Children
The Wyden-Smith proposed tax legislation would make four changes to the Child Tax Credit (CTC). First, it would increase the cap on the refundable portion of the CTC, eventually to the same amount as the maximum non-refundable CTC. Second, it would begin indexing the maximum non-refundable CTC with inflation. Third, it would apply a one-year lookback for…
January 29, 2024
The Value of a Bachelor’s Degree
Key Points As public confidence in higher education has declined, Americans have become less sanguine about the bachelor’s degree and skeptical of its potential return on investment. Nonetheless, four-year degrees continue to be associated with significant economic and noneconomic benefits for individuals and communities. For those who want to attend college, have adequate financing options, and can finish their degrees, the benefits of…
January 29, 2024
Let’s Not Turn the Child Tax Credit Into Welfare
A renewed effort to expand the child tax credit (CTC) is currently making its way through Congress. The proposed policy would increase benefits for low-income families—especially those with multiple children—automatically grow the credit with inflation, and most contentiously, eliminate the work requirement for families who had earnings in the prior year. In debating these changes and even…
January 26, 2024
Please Congress: Make Fiscal Sanity a Priority
Sometimes I don’t understand Republicans in the House of Representatives. When they are threatening government shutdowns, they make a great show of saying their highest priority is getting a handle on out-of-control federal spending, reducing the deficit, and bringing down our national debt. And yet, when an obvious opportunity falls in their lap to reduce…
January 25, 2024
On the Front Porch with Brent Orrell and Tony Pipa: A Conversation with Nicholas F. Jacobs
On January 25, AEI’s Brent Orrell and the Brookings Institution’s Tony Pipa hosted the first of a series of conversations “On the Front Porch” with authors of recent research on issues facing rural America. Mr. Orrell and Mr. Pipa spoke with Nicholas F. Jacobs, the author of The Rural Voter: The Politics of Place and the Disuniting of America, a recent book that examines the state…
January 21, 2024
Portland’s Encampment Kids
I’m standing outside the Central Police Precinct in downtown Portland, Oregon. Officer Eli Arnold and I have bicycled over to meet two of his colleagues, returned from a drug bust. We examine the proceeds of the crime on the hood of a squad car. The officers weigh the fentanyl powder on a small scale, record…
January 19, 2024
The Work Incentive and Employment Effects of Eliminating the Child Tax Credit’s Annual Income Requirement
Abstract Senior House and Senate tax committee leaders agreed to a framework for modifying the Child Tax Credit on January 16, 2024. The most consequential reform would eliminate the Child Tax Credit’s annual income requirement by allowing individuals to calculate their eligibility using their current or prior year’s income, whichever year maximizes the family’s benefit….
December 18, 2023
The State of Democratic Capitalism: 2023
How to assess the health of democratic capitalism in the United States? Fundamentally, it is very strong. The marriage of democratic politics and a free-market economy continues to strengthen each, with free markets generating the employment opportunities and prosperity that lead to widespread support for our political system and the rule of law, strengthen democratic…
December 15, 2023
Pro-Family Policy Priorities for States
Introduction America’s system of federalism means that the is- sues that most directly impact the lives of parents and families are often most appropriately dealt with at the state level. While many conversations about how to make family life more affordable and achiev- able in the U.S. tend to focus on the federal tax code,…