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
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…
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…
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 12, 2023
Now the Administration Is Legislating on Welfare, Too
Last week the Department of Health and Human Services issued a proposed rule related to the Temporary Assistance for Needy Families (TANF) program. TANF is the cash welfare block grant Congress created in the 1996 welfare reform law, which was central to that legislation’s efforts to promote more work and less welfare receipt. For a capital already familiar with…
September 19, 2023
House Budget Plan Proposes Commonsense Welfare Changes
The House Budget Committee, headed by Chairman Jodey Arrington (R-TX), today released a draft budget proposal detailing the majority’s spending priorities and proposed changes across a range of government benefits and programs. Several policies would promote higher levels of work among welfare recipients, which is especially necessary while benefit rolls remain elevated despite plentiful job openings. According to recent research by our AEI colleague Angela Rachidi, less…
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…
June 27, 2023
House Republican Plan Penalizes Marriage
If there was something liberals used to hate most about welfare reform, it was policies that promoted more work and smaller welfare caseloads. For example, during debate about 1996 reforms, Sen. Carol Moseley-Braun (D-IL) asked what would happen to families if they didn’t meet proposed work requirements: “Do we put them on trains and send them out West?” Sen. Ted Kennedy (D-MA) said those reforms “can only encourage a…
June 15, 2023
Testimony on Anti-Poverty and Family Support Provisions in the Tax Code
Introduction Chairman Wyden, Ranking Member Crapo, and distinguished members of Committee, thank you for the opportunity to testify. My name is Bruce D. Meyer, and I am the McCormick Foundation Professor of Public Policy at the University of Chicago Harris School of Public Policy. I have spent forty years researching the effects of government programs…