February 15, 2021
THE rIGHT WILL OPPOSE IT BECAUSE IT HELPS NON-WHITES:
Why Progressive And Conservatives Can Back Romney's Child Bill (Mona Charen, Feb. 14th, 2021, National Memo)
Part of the reason our kids are struggling is due to changes in family structure. Though the marriage norm has declined nearly everywhere, the U.S. holds the dubious distinction of leading the developed world in unstable adult relationships. Child Trends reports that the 2017 poverty rate for children in married couple families was 8.4%. For kids in single mother homes, the poverty rate was 40.7%.Clearly, a return to the two-parent norm (updated to include same-sex marriages) would be ideal. But that is a complicated cultural matter that governments have limited capacity to affect -- except, as the Romney Family Plan envisions, we can at least stop doing the things that penalize marriage. Our system of getting aid to children is convoluted. Because we Americans love to disguise spending as "tax policy," we offer a "child care tax credit" along with a child allowance included in the Earned Income Tax Credit. The poorest families receive TANF. The way the EITC is structured, an analysis for the Niskanen Center demonstrates, can cost couples between 15% and 25% of income if they marry. Also, the child care tax credit, which the Biden administration's proposal would expand, serves as a pass-through to increase prices for providers without helping the average family choose the kind of relative-provided or local child care arrangements that most families prefer. It also preferences paid day care over parental care.The Romney proposal would sweep away TANF, the tax credits and the rest in favor of a simplified and more generous child allowance of $4,200 per year for children up to age 6, and $3,000 per year for children ages 6-17.Conservatives worry about the disincentive to work inherent in traditional welfare programs, which reasonable. But part of the old "poverty trap" was not the child allowance per se but the implicit high marginal tax on earnings as parents reentered the workforce. Niskanen points to Canada's experience with a direct child allowance, finding that labor force participation actually increased after their child allowance was increased in 2016.
Posted by Orrin Judd at February 15, 2021 12:00 AM
