The most important debates in U.S. politics concern the size and role of government, as the polarized parties offer contrasting paths forward. Republicans urge holding the line on taxes and limiting domestic expenditures. Democrats aim to preserve government functions and make some new investments—and call for tax increases to support these choices. As citizens and analysts weigh these options, it helps to put U.S. fiscal policy in cross-national perspective. Compared with other developed countries, the United States has very low taxes, does little to fight inequality, and has an extraordinarily complex tax code that undermines faith in the system. more...
tax
Over the past two decades, a wage subsidy operating through the tax system called the Earned Income Tax Credit has developed into America’s biggest program specifically dedicated to lifting low-income citizens out of poverty. Many Republicans as well as Democrats support this tax subsidy, which goes to people who work for modest wages. The extra money helps to reduce deprivation among poor families with children—something liberals very much want to do—yet it is the opposite of the sort of no-strings-attached “handout” that conservatives often decry.
As a tool to reduce poverty, the Earned Income Tax credit has a lot going for it. But it also has important limitations. The credit can be improved, and other programs are needed to help poor people find and hold jobs. more...
Over the past two decades, a wage subsidy operating through the tax system called the Earned Income Tax Credit has developed into America’s biggest program specifically dedicated to lifting low-income citizens out of poverty. Many Republicans as well as Democrats support this tax subsidy, which goes to people who work for modest wages. The extra money helps to reduce deprivation among poor families with children—something liberals very much want to do—yet it is the opposite of the sort of no-strings-attached “handout” that conservatives often decry.
As a tool to reduce poverty, the Earned Income Tax credit has a lot going for it. But it also has important limitations. The credit can be improved, and other programs are needed to help poor people find and hold jobs. more...
Research to Improve Policy: The Scholars Strategy Network seeks to improve public policy and strengthen democracy by organizing scholars working in America's colleges and universities. SSN's founding director is Theda Skocpol, Victor S. Thomas Professor of Government and Sociology at Harvard University.