August 14, 2023
Tracking Plans to Make Pandemic Benefit Expansions Permanent
In 2008, former White House Chief of Staff and Chicago Mayor Rahm Emanuel famously said what has come to be known as 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.” It’s clear that…
August 9, 2023
The CTC Work Incentive Works
The expiration of the American Rescue Plan Act at the end of 2021 brought with it the end of the fully refundable Child Tax Credit (CTC). The CTC has since returned to its pre-pandemic form, phasing-in at 15 percent of earnings beyond $2,500, up to a maximum of $1,600 in a refundable CTC per child…
August 3, 2023
Another Pandemic Legacy: Removing the EITC’s Work and Earnings Requirement
Since its origin in the 1970s, the Earned Income Tax Credit (EITC) has been the premier federal program promoting and rewarding work by low-income adults. As displayed below, taxpayers have devoted rapidly growing resources to the EITC since the 1980s. Overall, between 1975 and 2022, the EITC cost taxpayers a total of $1.8 trillion, which…
August 3, 2023
Fight Crime, and Poverty, with Civil Society
Maryland’s new Democratic governor, Wes Moore, has to play to his party’s increasingly left-wing base, but he also knows that problem No. 1 in much of the state is rising crime. Prince George’s County, in particular, has a much higher crime rate than the national average, and crime has been rising since the COVID lockdowns, which were extraordinarily…
July 28, 2023
It Really Is More Expensive to Give Everyone $1 Than to Give Some People $1
In a piece from last year, Matt Bruenig of the People’s Policy Project argues (in the title of the piece) “Universal Benefits Cost Less Than Means-Tested Benefits.” He lays out his central claim in the following passage: Korpi and Palme accept the idea that, for a given welfare budget, targeted programs reduce inequality and poverty more than…
July 26, 2023
How Worker Benefits Turn into Welfare
The disparity between what the federal government collects in taxes and what it spends was never greater than during the pandemic, when annual deficits peaked at $3.1 trillion in 2020. Even today, when the president swears Bidenomics is “working everywhere,” annual deficits exceed $1.5 trillion, and are expected to only grow. One little-noticed driver of record deficits was…
July 25, 2023
Not Just Tulsa
Earlier this month, an Oklahoma judge ruled that the City of Tulsa cannot be held legally or financially responsible for the actions of the violent mob that burned down the city’s Greenwood section, known as the Black Wall Street, in 1921. Three survivors of that murderous riot will not, it appears, receive compensation. Despite their disappointment, the…
July 17, 2023
The Latest Extraordinary Findings on Pandemic Improper Payments
A recently released US Government Accountability Office (GAO) report benignly titled “A Framework for Managing Improper Payments in Emergency Assistance Programs” serves as a forward-looking guide for policymakers responding to future emergencies. It also includes a number of extraordinary facts about how badly government programs were abused during the pandemic. The following highlights what GAO found: 1….
July 17, 2023
Testimony: The Child Tax Credit: 25 Years Later
Chairman Bennet, Ranking Member Thune, and subcommittee members, thank you for theopportunity to testify. My name is Angela Rachidi and I am a Senior Fellow on poverty andopportunity at the American Enterprise Institute. Before I joined AEI, I was a DeputyCommissioner for the New York City Department of Social Services, where for more than a…
July 17, 2023
Testimony: Correcting the Record on the Effects of Replacing the Child Tax Credit with a Child Allowance
Chairman Bennet, Ranking Member Thune, and distinguished members of the Subcommittee onTaxation and IRS Oversight, thank you for the opportunity to testify on the Child Tax Credit(CTC). My name is Kevin Corinth, and I am a Senior Fellow and the Deputy Director of theCenter on Opportunity and Social Mobility at the American Enterprise Institute. This…