Wednesday, November 21, 2018

Earned Income Tax Credit

From Laurie
"New Study Says EITC Expansion Would Be 87% Self-Financed  by Kevin Drum  So would you support more money to poor people if it cost very little? "

I think increasing the EITC may be a good idea if we can reduce the welfare budgets by the same amount. Or are you think we should increase EITC and keep the welfare / Medicaid the same?

I support most programs that require the recipient to learn, work, improve, etc...  I disagree with most programs that provide services or money with little or no expectations of the recipient... The goals need to be:
  • Promote fiscally responsible behavior
  • Promote escaping government dependency
  • Promote learning and improvement 
  • Promote raising children well
EPI EITC and CTC History
TPC EITC
CBPP Reducing EITC Over Payments
CBPP EITC and CTC

19 comments:

jerrye92002 said...

I'll bite. I agree EITC should be "funded" by cuts to welfare expenditures. The problem is it does nothing to make the recipient better off in preparation for work-- little better than a work requirement. I would be inclined to go much further, to a graduated negative income tax, requiring only certification from a social worker that the recipient was making "adequate progress" towards self-sufficiency, and it would be the responsibility of the social worker to assist in that. (incentive pay?)

John said...

Did you forget that you don’t trust social workers, teachers, etc?

jerrye92002 said...

Did you forget to ask me what I think before assuming you know the answer?

John said...

Sorry. How do you intend to ensure these bureaucrats actually achieve the results you want to give them extra compensation for?

jerrye92002 said...

OK, I'll admit that part of the plan wasn't thoroughly thought through. I was trying to eliminate the problem of a welfare worker "working themselves out of a job," which seems to be extant in the current environment and preventing any such improvement in human dignity, capital, personal and national economy from happening. The other part of that plan, of teaching some welfare recipients to be welfare workers, founders on the same reef, but adds the very real possibility of corruption. So the base idea is still much better than current practice, but any incentive system would require proof of "improvement," easily obtained from the recipient's tax return.

John said...

What do you see when you read charts?

Or this map?

This one is . full of data, but it comes with commentary...

jerrye92002 said...

I see that they are determining "mobility" as fixed at age 30, when the real mobility occurs as a matter of age through a lifetime.

I see they ascribe many of these "inequalities" to race, when they may be a matter of culture and/or the results of culture-- like being trapped on welfare or in poor schools.

I'm not sure what these studies prove about the case in point. If the intention is (as it should be) to "raise all boats" by reforming welfare and reducing poverty, then simply pointing out the problem with the current state of affairs ought to be a given, not requiring further evidence.

Of ocurse, if the ultimate point is to prove that those whose parents are better off economically do better economically, then the obvious solution to this "inequality" is to raise the economic circumstance of those at the bottom without reducing that of those at the top. Surely the sum total of the economy is increased if everyone is working?

John said...

I guess I think there is a lot more there than... "simply pointing out the problem with the current state of affairs"

I think there is a lot of data there regarding root causes... And of course the best way to fix a problem is to fix the root causes...

Unfortunately neither party seems too interested in attacking the issue seriously.

And since the Blue States and Blue Countries seem to be doing a better job of fixing the problem. Republicans should probably try to learn from them...

jerrye92002 said...

"better job"? Source, please, preferably accompanied by actual evidence? All I see is billions spent and people still in penury and squalor. It is simply inefficacious and needs to change. I'm starting to believe the current lament that our politicians "aren't interested in solving problems." Doesn't mean WE cannot.

John said...

Just look at the map

The reddest areas are in the Bible belt where backwards Conservatives hold the power....

jerrye92002 said...

Would you care to establish a causal link for that proposition, or is it just your bias showing? I could just as well say these are the areas with the highest black populations.

John said...

Now that would be a strong racist position. (ie Black equals Unable to Thrive)

No, I think it has to do with how those societies have chosen to run their government.

jerrye92002 said...

Government causes poverty? Now THERE is an interesting theory.

Let me ask you: since most "blue states" and even our federal government have poored TRILLIONS of dollars into means-tested welfare programs, why do we have more people in poverty than we had 40 years ago? official data

jerrye92002 said...

And racial bias is no more odious than political bias when it is so nasty.

John said...

Well you know my opinion

That and the 10s of millions of poor legal and illegal immigrants we have absorbed over that period.

jerrye92002 said...

OK, but rather than debate that all again, let's talk about a specific and major welfare reform idea to accomplish #5 and largely beget the others as a result.

John said...

Unfortunately focusing on only this one.

"5.The welfare payments and service should be set up to make recipients work, learn, mature and improve their self sufficiency."

Leaves a lot of kids hungry, homeless and poor...

That's why excellent sex education, free birth control and even early term abortions are so important. Unfortunately those are three things that are allowed in the Bible Belt...

Well that and that they prefer to spend little on their early childhood education, K-12, and Higher Ed.

jerrye92002 said...

You need to see this-- not all of your solutions pass the test:
Harvard says

John said...

Continued Here