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“In the old days, we thought the more complex things were, the better they would be targeted,” said Diane Whitmore Schanzenbach, an economist at Northwestern who has studied welfare systems. “We have learned over the past 20 years that the more complex things are, the more likely the poorest people are to drop out.”
If American parents were given monthly deposits, they would be very aware of it – which could make the programs more popular and politically sustainable. Currently, for example, Social Security is very popular even though it has progressive features that favor low-income Americans. (Notably, Mr. Romney’s proposal would distribute the child allowance from mid-pregnancy, through the Social Security Administration rather than through the tax system.)
In addition, in both plans, many more people would qualify for checks than would receive current child benefits. Among them would be the parents of 27 million children (parents who do not earn enough to qualify for the current child tax credit), including the parents of about half of all black and Latino children. . That would include wealthy people, too – in Mr. Romney’s plan, all parents would receive the checks, and couples earning $ 400,000 and more would have to repay some or all of the money at tax time.
“It would be tangible and noticeable, and I think all is well to make it politically viable,” said Chuck Marr, senior director of federal tax policy at the Center on Budget and Political Priorities. “Society recognizes that children are dear.”
Finally, the Biden and Romney plans would abolish the work requirement attached to most family benefits and make them available to parents who stayed at home and those who paid for child care.
At $ 3,000 per year for parents of school-aged children, the benefit would not be large enough to replace a job. But it is a recognition that children need financial support, regardless of the professional status of their parents. Mr. Romney’s plan underscores this idea by changing one of the main benefits for poorer families, the earned income tax credit. Now it primarily supports low-income working parents, but the new plan would repeal family allowances from the credit, making it primarily focused on gainful work, regardless of parental status.
“It’s a real start, and I think it’s a recognition that it’s not your kid’s fault if you don’t work, and your kid is most definitely the one who suffers if you don’t. income, ”said Elaine Maag, who studies policy and tax programs for low-income families at the Urban Institute.
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