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Related Papers

Economic Facts Dec 2, 2013

A Dozen Facts about America’s Struggling Lower-Middle Class

Many American families whose incomes are not low enough to officially place them in poverty live in economically precarious situations. This struggling lower-middle class consists of the 30 percent of working-age families with children who have incomes between 100 and 250 percent of the federal poverty level (FPL). These economic facts focus on two key challenges facing lower-middle-class families: food insecurity and the low return to work for families who lose tax and transfer benefits as their earnings increase.

Policy Proposal Jun 16, 2014

Building on the Success of the Earned Income Tax Credit

In this policy memo, Hilary Hoynes proposes expanding the Earned Income Tax Credit (EITC) by raising the benefits for families with one child to be on par with the benefits for families with two children. This proposal aims to strengthen work incentives for low-income, one-child families; raise 410,000 people—including 131,000 children—out of poverty; and increase after-tax income by about $1,000 for one-child EITC beneficiaries, leading to improvements in health and children’s cognitive skills. This proposal is chapter eleven of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Improving Safety Net and Work Support.

Policy Proposal Jun 2, 2014

Supporting Low-Income Workers through Refundable Child-Care Credits

In this policy memo, James P. Ziliak proposes converting the federal Child and Dependent Care Credit from a nonrefundable tax credit to a refundable one, capping eligibility at $70,000 and making the credit a progressive function of income, child age, and use of licensed care facilities. This proposal, targeted at low- and middle-income families with children under the age of twelve, aims to increase labor force participation, disposable income, and the use of higher-quality child care. This proposal is chapter ten of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Improving Safety Net and Work Support.