It’s not the biggest point. But it’s worth noting. One of the biggest drivers of the fact that 47% of households pay no income tax is Republican public policy. Specifically, the Earned Income Tax Credit or EITC. Now, to be clear, it’s a good policy. I’m not sure whether it’s better than others like just increasing the minimum wage. But we’re much better with it than without it. Again, though, that’s Ronald Reagan’s baby right there. And something Democrats eventually embraced. The basic idea is that if you’re working and have kids the tax code will try to nudge you up over the poverty line with negative taxes, i.e., tax credits. If this is a disaster, we know who to blame.
September 18, 2012 8:13 am