Policy Shop: Transferring Cash to Poor People at the Local Level

New post at Policy Shop. Excerpt: The real fascinating case, then, is the Montgomery County EITC. Because most local governments do not have their own income tax, a local EITC program seems impractical. But Montgomery County has gotten around this problem by piggybacking off of Maryland’s state EITC program. When a Montgomery County resident receives… Continue reading Policy Shop: Transferring Cash to Poor People at the Local Level

Just Give Everyone Food Stamps

The right-wing is getting riled up about food stamps, again. Sean Hannity even dedicated an entire hour to the food stamp program last week, with predictable messaging about how it is exploding and a scourge on the country. While the purpose of this manufactured outrage is to get rid of or dramatically shrink the food stamp program,… Continue reading Just Give Everyone Food Stamps

Policy Shop: Cash Benefit Programs Are Not Really Government Spending

New post at Policy Shop. Excerpt: Cash benefit programs are simply distributive institutions: they, along with our other economic institutions, determine which individuals get to spend money and how much. The government does not spend money on a cash benefit program, it just channels it to someone who spends it. The only coherent objection that… Continue reading Policy Shop: Cash Benefit Programs Are Not Really Government Spending

Transfers really do work

A transfer is a cash (or cash-like) benefit that governments just distribute out to certain (or all) people. The United States has a variety of transfer programs. The Earned Income Tax Credit transfers money to low-income workers and their families. The Child Tax Credit transfers money to households with dependent children. SNAP transfers food vouchers… Continue reading Transfers really do work