"This [proposal] is a significant reform that would close loopholes that fuel inefficient tax sheltering and make the income tax more progressive, and help pay for some of Biden’s domestic policy wish list," writes Leonard Burman, Paul Volcker Chair in Behavioral Economics.
"Investing in better roads, bridges, dams, electrical infrastructure, all of that stuff, clearly, those investments pay returns over a long period of time," says Leonard Burman, Paul Volcker Chair in Behavioral Economics. "Investing in better education, if you can do it, pays returns over the course of decades."
"Unless they can pair it with a policy that forces people to reduce emissions, a big spending bill doesn’t have a big impact," says David Popp, professor of public administration and international affairs. But, he adds, "spending money is politically easier than passing policies to cut emissions."
"Taking out the politics, planning a tax bill that would help reduce inequality, make the system work better, raise revenue to slow the rate of growth of the debt, all of those things would make a whole lot of sense," says Leonard Burman, Paul Volcker Chair in Behavioral Economics. "But the question is just timing, and it’s always a bad time for a tax increase because it’s hard to get your base excited about raising taxes."
"Our recent analysis of public opinion about people’s attitudes toward government assistance shows that Democrats can gain the support of conservative voters for assistance to the poor through smart policy design. And there is no better example than the American Rescue Plan (ARP)," Associate Professor of Political Science Chris Faricy and Christopher Ellis (Bucknell University) write.
Undoing the earned income threshold is a particular benefit to Black and Latino children who disproportionately live in households falling underneath the earned income threshold, says Katherine Michelmore, assistant professor of public administration and international affairs.
"The kids who don’t receive the full credit right now are predominantly kids who are lower income, many who are living in poverty, and many who are either Black or Latino," says Katherine Michelmore, assistant professor of public administration and international affairs.