>On Behalf Of Max Sawicky
>> If you spread $85 billion over all families w/children,
> the poor would see less than they do now.
Here is where I politically disagree with you. If most families with
children were given the credit, a larger percentage of them would have no
tax liability at all. T
Max:
Then, you are trying to find a way to do targeting within universalism, and we
agree. I thought for a long time that something like what you are doing is the
way out of the dilemma I described, so I'd be interested in seeing what you
come up with.
Joel Blau
Max Sawicky wrote:
> This is
This is the classic problem of universalism vs. targeting efficiency, but
I'm
not sure I come down on the same side you do. On the universalistic side,
money for the poor requires, as a kind of informal political blackmail,
money
for the rich (or at least the more affluent). Targeting focuses the
This is the classic problem of universalism vs. targeting efficiency, but I'm
not sure I come down on the same side you do. On the universalistic side,
money for the poor requires, as a kind of informal political blackmail, money
for the rich (or at least the more affluent). Targeting focuses the
It should be pointed out that we get into these problems of high marginal
tax
rates and rapid phase-outs because unlike every other country, we try to
support families indirectly through the tax code rather than directly
through universal family/children allowances. If we are going to spend $85
bi
It should be pointed out that we get into these problems of high marginal tax
rates and rapid phase-outs because unlike every other country, we try to support
families indirectly through the tax code rather than directly through universal
family/children allowances. If we are going to spend $85 bi
. . .
> The problem is if you want to do an earned income tax
> credit (or a negative income tax), the more you give, the
> more you have to take away, and the higher the implicit
> marginal tax rate must be in the take-away zone.
> If you want a low marginal rate at the bottom, you must
> dispen
