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February 6, 2024

Research by a Top Biden Administration Economist Reinforces the Importance of Work Incentives in the Child Tax Credit and the Safety Net

…[9] Bastian also models estimates from Corinth and Meyer that have been incorporated into Appendix B of Corinth et al. (2022). These Appendix B results are not estimates that Corinth

February 2, 2024

Has Intergenerational Progress Stalled? Income Growth over Five Generations of Americans

Abstract We find that each of the past four generations of Americans was better off than the previous one, using a post-tax, post-transfer income measure constructed annually from 1963-2022 based…

January 31, 2024

The Wyden-Smith Child Tax Credit and Work: Responding to Critics

The Wyden-Smith tax bill under consideration in the House has rekindled a debate about the Child Tax Credit (CTC) and work incentives. We, along with our colleagues, Angela Rachidi and…

January 30, 2024

How Sensitive Are Single Mothers’ Work Decisions to a Change in Incentives? Correcting Misperceptions of the Evidence

…on Reviews Corinth et al. (2021, rev 2022) 0.75 —   p. 22; based on midpoint of McClelland and Mok (2012), p. 5 (below); unpublished Hotz and Scholz (2003) 0.7-1.2…

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…

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…

January 21, 2024

Portland’s Encampment Kids

…can touching the foil where it gets cooked. Kevin Dahlgren, who does homeless outreach in Portland, recently encountered a mother and her young child playing with fentanyl foil. “I told…

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…

January 17, 2024

Congress, Don’t Legislate a Takeover of the Nation’s Rental Housing Market

It is an election year and Congress will soon consider two bipartisan bills to address high rental costs for many renters. The first is the Workforce Housing Tax Credit (WFHTC)…

January 12, 2024

Congress Shouldn’t Expand Welfare in Return for Corporate Tax Cuts

Bipartisan negotiations to revive the Democrat-favored 2021 Child Tax Credit in return for Republican-favored business-tax cuts are heating up. The business-tax cuts could be helpful in principle — if they focus on…