October 9, 2014 at 10:35 am
CBPP Senior Fellow Jared Bernstein will participate in a TalkPoverty LIVE! online panel discussion at 2:00 today on three policies to reduce poverty and increase economic security:
- Raising the minimum wage and strengthening the Earned Income Tax Credit, or EITC;
- Addressing erratic work schedules to make it possible to balance work and family;
- Reforming the criminal justice system and re-entry policies so that criminal records do not resign people or their families to a life of poverty.
Other panelists include the Center for Law and Social Policy’s Jodie Levin-Epstein and the Southern Coalition for Social Justice’s Daryl Atkinson. … Read more
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October 8, 2014 at 2:05 pm
Unless Congress acts, key Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) provisions will expire at the end of 2017, pushing 17 million people — including 8 million children — into or deeper into poverty. As we’ve noted here and here, making these provisions permanent should be a key priority for Congress.
Our new interactive calculator, below, allows you to explore what’s at stake for low- and moderate-income families if three important provisions expire at the end of 2017:
CTC refundability threshold
Current provision: The CTC is worth up to $1,000 per child, and families have to work to qualify for it. … Read more
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October 7, 2014 at 4:34 pm
New Jersey, which already comes up short in budget planning and budget transparency, is falling even further behind.
The state Treasury Department recently stopped publishing monthly comparisons of actual tax collections to projected collections — information that the state’s revenue status reports had included for years. The timing is especially unfortunate given New Jersey’s recent large revenue shortfalls. Delaying acknowledgement of sluggish revenue collections will give policymakers less time to address the problem if these shortfalls continue.
The state has also stopped publishing town-by-town data on state property tax rebates in its annual reports on property tax collections and has removed prior-year reports from its website. … Read more
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October 6, 2014 at 4:18 pm
With tax reform potentially on Congress’ agenda next year, the tax plan that Senators Mike Lee (R-UT) and Marco Rubio (R-FL) sketched out recently will merit a close look. Its marquee proposal would supplement the current Child Tax Credit (CTC) with an additional credit of $2,500 per child. We can’t evaluate the plan, which the senators say “won’t only help revive the American dream, but also make it more attainable for more Americans than ever before,” until they provide the details. … Read more
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October 3, 2014 at 3:16 pm
This week on Off the Charts, we focused on the federal budget and taxes, health care, food assistance, the safety net, and jobs.
- On the federal budget and taxes, Chye-Ching Huang highlighted a recent must-read study that clarifies the relationship between tax cuts and growth. Brandon DeBot explained why tax incentives for retirement savings are ripe for reform. Chad Stone described how House Budget Committee Chairman Paul Ryan’s call for “dynamic scoring” in tax reform is a gimmick that would only invite more mischief.
… Read more
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October 3, 2014 at 2:18 pm
“The reality of tax reform . . . is that any politically feasible plan to scale back tax benefits doesn’t generate enough money to significantly cut tax rates without increasing the deficit,” my latest post for U.S. News’ Economic Intelligence notes. “Rather than grapple with this reality, . . . House Budget Committee Chairman Paul Ryan invoked the last refuge of supply-side tax cutters in recent comments about how to proceed with tax reform.” Specifically:
Ryan wants to change long-established methods for estimating the revenue effects of proposed tax changes that the Congressional Budget Office and Joint Committee on Taxation use to “score” the budgetary effects of such legislation.
… Read more
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October 3, 2014 at 9:48 am
Today’s generally solid report shows that job creation is back on an over-200,000-a-month track after slowing sharply in August. Nevertheless, there appears to be substantial room for further expansion, allowing the Federal Reserve to keep interest rates low in pursuit of high employment without igniting unacceptable inflation. Moreover, policymakers should not be concerned about inflation even if wages begin to grow faster than they have so far in the recovery.
Click here for my full statement with further analysis.
… Read more
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October 2, 2014 at 3:00 pm
Many health reform opponents warned that people buying health insurance in the individual market would face a sharp, pervasive spike in premiums. The Manhattan Institute predicted that “Obamacare” would bring double-digit premium increases, while the Heritage Foundation wrote, “individuals in most states will end up spending more on the exchanges” (or marketplaces) than they previously paid. Not only did those dire predictions fail to come true, but there’s good news to report about premiums as open enrollment under the Affordable Care Act (ACA) approaches.… Read more
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October 2, 2014 at 1:49 pm
With leading members of both parties placing tax reform high on the agenda for next year, a new paper by William B. Gale, Co-Director of the Urban-Brookings Tax Policy Center (TPC), and Andrew Samwick, a Dartmouth College professor and former Chief Economist for President George W. Bush’s Council of Economic Advisers, is a must read. They review the evidence about how income taxes affect economic growth and explain:
The argument that income tax cuts raise growth is repeated so often that it is sometimes taken as gospel.
… Read more
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October 1, 2014 at 2:49 pm
Today’s start of fiscal year 2015 brings small adjustments to SNAP (formerly food stamps) eligibility and benefits. We’ve updated our quick guide that provides an overview of SNAP eligibility and benefit calculation rules.
To be eligible for SNAP, a household must meet three tests related to gross monthly income, net income, and assets. Our guide defines “income” and “assets” and clarifies who isn’t eligible regardless of income or assets — such as individuals who are on strike, all undocumented immigrants, and certain legal immigrants.… Read more
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October 1, 2014 at 1:14 pm
A central piece of health reform authorizes the federal government to provide tax credits to help low- and moderate-income people buy coverage in the new health insurance marketplaces. A federal district court judge in Oklahoma ruled yesterday that the law only authorizes the tax credits in states that have set up their own exchanges, not in states with a federally operated exchange. (Other federal courts have split on the issue, which may eventually reach the Supreme Court.) But this argument rests on a distorted reading of the law. … Read more
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September 30, 2014 at 12:30 pm
Millions of low-income people qualify for both Medicaid and SNAP (formerly food stamps), but the federal government doesn’t regularly assess how many of them actually receive both. That’s a significant omission: Medicaid and SNAP address the most basic needs of our poorest citizens, and health care and nutrition assistance likely produce more powerful results when provided together. A new Urban Institute paper examining joint participation among eligible children and non-elderly adults in five states — something the federal government could do for all states every year — suggests there is substantial room for improvement.… Read more
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