January 12, 2024
Small-Dollar Demonstration Projects Can’t Hide That a National Guaranteed Income Program Would Cost Trillions
Abstract While some have declared that short-term guaranteed income demonstrations (patterned on universal basic income schemes) are working almost universally, such cheerleading misses a major drawback: the enormous costs that would arise if such programs operated at a national level, as proponents intend. This report reviews the costs of some recent proposals to operate such…
January 11, 2024
Tax Credit Nation — Politicians Are Casting New Spending As ‘Tax Cuts,’ Hiding Their True Cost
With the national debt soaring past $34 trillion, liberal politicians hoping to expand the federal leviathan face a conundrum. How can they convince Americans wary of the effects of runaway government spending—painfully evident in recent elevated inflation and interest rates—to nonetheless support even greater expenditures? As President Biden and others demonstrate, one way is to cast new…
January 11, 2024
To Better Promote Work, Stop Subsidizing More Benefit Collection
Never shy about lampooning government dysfunction, Ronald Reagan famously said that if you want more of something, subsidize it. But even the Gipper couldn’t have imagined today’s growing zeal to subsidize getting more people on government benefits, which undermines work and leaves too many on the sidelines of the economy. Welfare programs achieve that dubious distinction…
January 10, 2024
Even Congress’s “Tax Extenders” Are About More Benefits
Congress’s long list of unfinished business for the new year includes “tax extender” legislation, which is normally considered before lawmakers adjourn for the holidays in December. The fact that this legislation has lingered into January isn’t the only oddity. In an era of already rapidly rising spending, the more troubling anomaly is much of that supposed…
December 7, 2023
The White House Council of Economic Advisers Contradicts the President’s Poverty Talking Points
Before Thanksgiving, the White House Council of Economic Advisers (CEA) released a blog post titled “The Anti-Poverty and Income Boosting Impacts of the Enhanced CTC.” That’s a reference to the temporary—and now expired—expansion in the child tax credit (CTC) enacted as part of Democrats’ March 2021 American Rescue Plan Act. In its FY 2024 budget proposal earlier…
December 1, 2023
Making the Child Tax Credit “Fully Refundable” Converts It into Welfare Checks
In what is becoming an annual ritual, news accounts and DC sources suggest liberals’ end-of-year legislative wish list once again includes reviving the worst part of Democrats’ partisan 2021 child tax credit (CTC) expansion. That proposal would convert the pro-work CTC into new federal welfare checks for nonworking parents, which Congress should flatly reject. Here’s how the respected Committee for a Responsible Federal…
November 21, 2023
Defining Poverty Up
Thirty years ago, the late Senator Daniel Patrick Moynihan (D., N.Y.) wrote a seminal essay titled “Defining Deviancy Down.” He argued that Americans had “become accustomed to alarming levels of crime and destructive behavior” such as soaring out-of-wedlock childbearing behind increased welfare dependence. Policy-makers responded to Moynihan’s call, and the bipartisan 1994 crime bill (which Moynihan…
October 31, 2023
Lawmakers Continue Trying to Revive Pandemic-Style Benefits
In 2008, Rahm Emanuel, chief of staff to President-elect Barack Obama, famously issued Rahm’s rule: “You never want a serious crisis to go to waste. And what I mean by that [is] it’s an opportunity to do things that you think you could not do before.” Lawmakers applied Rahm’s rule liberally during the pandemic, providing record stimulus…
October 25, 2023
Dispelling Myths About The Child Tax Credit
Every culture has its famous myths, such as Bigfoot and the Loch Ness monster, and the world of politics is no different. Take, for example, President Joe Biden’s claims that he is a unifier or that ” Bidenomics” is working . The president offered another mythical claim last month when he said that “we cut child poverty by nearly half ……
October 17, 2023
Understanding Poverty Measurement
COSM scholars and AEI affiliates include some of the nation’s foremost experts on poverty measurement. On October 17, COSM gathered several of these scholars to provide a primer on opportunity in the United States. Angela Rachidi began by exploring the meaning of poverty, outlining the most fundamental decisions in measuring it and describing how different…