Highlights
- Conservative scholars/leaders ask Congress to prioritize hardworking Americans and their families by expanding the EITC and the CTC. Post This
- "Expanding the CTC and EITC now would provide much needed aid to America’s working families," according to a group of conservative scholars and leaders. Post This
Editor's Note: Today, a diverse group of conservative scholars and leaders, including IFS senior fellow W. Bradford Wilcox, sent a letter to the leaders of Congress, asking for the expansion of the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) because of the economic and family consequences of the COVID-19 pandemic. The text of the letter is below (note: all affiliations listed are for identification purposes only, and do not reflect the views or positions of the institutions themselves).
July 16, 2020
The Honorable Nancy Pelosi
Speaker, U.S. House of Representatives
The Honorable Mitch McConnell
Majority Leader, U.S. Senate
The Honorable Kevin McCarthy
Minority Leader, U.S. House of Representatives
The Honorable Charles Schumer
Minority Leader, U.S. Senate
Dear Speaker Pelosi and Leaders McConnell, Schumer, and McCarthy,
As you know, the COVID-19 pandemic has wrought enormous damage in our nation. We grieve with those who have lost their loved ones to this terrible disease, and we hope for the recovery of those who are ill. We are hoping as well for a rapid recovery of our economy.
While there have been some recent signs of progress, many Americans are suffering from severe financial distress. Our nation’s unemployment rate is a devastating 11.1%—much higher than it was even during the Great Recession. The coming months will be very difficult for many Americans and their families as they try to regain their financial footing after an unforeseeable blow. It is crucial that our government play an ancillary role of providing support to those most in need.
As you consider how best to address these economic challenges, we hope you will consider expanding two popular, bipartisan policies: the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). These two tax policies are proven to be the most effective programs at lifting Americans out of poverty and expanding them now would provide much needed aid to America’s working families.
The EITC rewards work, encourages attachment to the labor force, and brings millions of Americans out of poverty each year. With many workers experiencing job losses and reductions in work hours, a second EITC in the fall of 2020 would help millions of families. Because of widespread unemployment this year, Congress should base this second EITC on 2019 earnings; it should also minimize the marriage penalty associated with the EITC by setting a higher income threshold for married workers for this second payment.
The CTC also reduces poverty while fostering some of our nation’s most critical investments: those that parents make for their children. At a time when family budgets are under great stress and many parents have stopped working to care for their children, enlarging the child credit would offer much needed relief. We believe that an additional, fully-refundable CTC of $2,000 should be issued in the fall of 2020 to all American families. If this CTC is means-tested, the income threshold should be set so as to minimize any marriage penalty associated with the credit.
As you make the difficult decisions ahead, please remember to prioritize hardworking Americans and their families. Expanding the EITC and the CTC would be a wise investment toward that end.
Sincerely,
W. Bradford Wilcox
AEI/Institute for Family Studies*
Rachel Anderson
Center for Public Justice
John A. Burtka IV
The American Conservative
Robert P. George
Princeton University
Michael Hernon
The Messy Family Project
Johann Huleatt
The Bruderhof
Yuval Levin
American Enterprise Institute
Kathryn Jean Lopez
National Review Institute
Abby McCloskey
McCloskey Policy LLC
Rev. Dean Nelson
Douglass Leadership Institute
Ramesh Ponnuru
American Enterprise Institute
Mark Rodgers
The Clapham Group
Samuel Rodriguez
NHCLC
Terry Schilling
American Principles Project
Michael R. Strain
American Enterprise Institute
J.D. Vance
Narya Capital
*Note: All affiliations are for identification purposes only, and do not reflect the views or positions of the institutions themselves.
