Category Archives: EITC

New Article: “Poor Support/Rich Support: (Re)Viewing the American Social Welfare State”

New Article: Wendy A. Bach, Poor Support/Rich Support: (Re)Viewing the American Social Welfare State, forthcoming Florida Tax Rev. 2017.  Abstract below:

Since at least the 1970s a variety of scholars have redefined the U.S. social welfare state to include not only traditional benefit programs (for example Food Stamps and social security) but also a variety of tax benefits that are “hidden” or “submerged” forms of “welfare for the wealthy.” Including these benefits in the overall picture of U.S. social welfare provision reveals a system that is both larger in size than popularly believed and that, in addition to providing some support for the poor, distributes significant benefits regressively, to households with substantial wealth. Although a variety of scholars and policy analysts have described these outcomes, scholars have yet to focus on the ways in which structural inequality is written directly into the means of administration of U.S. social welfare programs. This article is the first to turn to those questions and to systematically demonstrate that those who are economically (and disproportionately racially) disadvantaged are offered a social welfare state that is meager, punitive and tremendously risky for those who receive its benefits. But for those with economic privilege, the story is quite different. Families and individuals with significant economic privilege benefit disproportionately from a whole host of cash and near-cash benefits that are neither meager nor punitive. In fact, in contrast to benefits for the poor, benefits for the rich function as nearly invisible entitlements. As one moves from benefits for the poor towards benefits for the rich the administrative structures shift along this progression, becoming less and less punitive and risky and more and more like invisible entitlements. Although as a formal matter the rich, like the poor, have no right to economic support in the Constitutional sense, American social welfare policy moves the rich remarkably close to a right to economic support, leaving the poor far behind. This article reveals these vast structural inequalities and concludes by calling not only, as others have, for an increase and more progressive distribution of social welfare dollars but also, for the first time, for reforms that would address the structural inequalities at the heart of the U.S. social welfare state and that would render it more successful at supporting the autonomy and resilience of all of its beneficiaries.

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News Article: Supply-Side Economics, but for Liberals

News Article: Neil Irwin, Supply-Side Economics, but for Liberals, N.Y. Times (Apr. 15, 2017).

 

Free CLE: “20 Years After ‘The End of Welfare:’ Workfare Delivered Through Federal and State EITC Systems”

Free CLE: 20 Years After ‘The End of Welfare:’ Workfare Delivered Through Federal and State EITC Systems  Format: Webinar. Date: October 24, 2016. Time: 2:00 PM – 3:35 PM ET. Sponsors: Section of Civil Rights and Social Justice and the Section of Taxation

Blog Post: “2015 Poverty Measures Released: Antipoverty Relief Delivered through the IRC = EITC & CTC”

Blog Post: Francine J. Lipman, “2015 Poverty Measures Released: Antipoverty Relief Delivered through the IRC = EITC & CTC,” The Surly Subgroup, Sept. 18, 2016.

News Coverage: Tax Deal Makes Permanent Key Improvements to Working-Family Tax Credits | Center on Budget and Policy Priorities

News Coverage: Tax Deal Makes Permanent Key Improvements to Working-Family Tax Credits | Center on Budget and Policy Priorities

Report: “Earned Income Tax Credit and Rural Households”

Report:  Jon M. Bailey, Earned Income Tax Credit and Rural Households (Center for Rural Affairs 2014).

News Coverage of a new Report: America’s best program for the poor may be even better than we thought – Vox

America’s best program for the poor may be even better than we thought – Vox. [About EITC and with links to a new report on EITC’s effectiveness].

Paul Ryan’s Proposal Hints at Change in Tone on Poverty – NYTimes.com

Paul Ryan’s Proposal Hints at Change in Tone on Poverty – NYTimes.com.

New Article: “EITC as Income (In)Stability?”

New Article: Kerry A. Ryan, EITC as Income (In)Stability?, 15 Fla. Tax Rev. 583 (2014).  Abstract below:

Congress enacted the Earned Income Tax Credit (EITC), inter alia, to entice poor single mothers to work (or work more) as a means of lifting themselves out of poverty. Its design as a wage subsidy that phases out at higher earnings levels is intended to accomplish this goal. A strong labor market is crucial to the success of work-based benefit programs, such as the EITC. The EITC can motivate female household heads to work (or work more), but they cannot act on that motivation if no jobs or additional working hours exist. This Article demonstrates that during economic downturns, the EITC wage subsidy contributes to, rather than prevents, poverty in single-mother families. Lost EITC benefits exacerbate recession-induced earnings losses, a phenomenon this Article refers to as income destabilization. In contrast, the EITC stabilizes the incomes of its wealthier beneficiaries as increased credit amounts offset underlying salary declines. While this pattern of income (de)stabilization is an unintended byproduct of the design of the EITC as a targeted wage subsidy, its negative impact on the economic welfare of female-headed households is problematic, given that these same families are the historically targeted program beneficiaries. This Article offers a narrowly tailored proposal that alters the structure of the EITC during recessionary periods in order to prevent EITC-induced income destabilization.

How to fix the EITC – Opinion – The Boston Globe

How to fix the EITC – Opinion – The Boston Globe… Op-Ed by US Rep. Richard E. Neal from Massachusetts.