The following is a news analysis:
Two recent stimulus measures sent residents earning up to $75,000 a year $1,400 in payments and bumped up the Child Tax Credit. That's at a cost of $570 billion tax dollars, according to economist Peter Morici.
Morici says the total benefit to families with four young children earning twice the media household income amounts to as much as $14,600.
Morici predicts that opens the discussion for a "guaranteed income," and will be a big campaign issue in 2022 and that Republicans may have a hard time competing with the generosity of Democrats.
He some payments stand to incentivize families with several children to work less:
The American Recovery Act sent $1,400 to every resident earning up to $75,000 a year—on top of the $600 provided by the December 2020 pandemic relief bill. Plus, for 2021 only, it bumps up the Child Tax Credit to $3,000—$3,600 for children under 6—from $2,000 and makes it “refundable”—parents don’t have to work to get it...
As importantly, Utah Republican Sen. Mitt Romney has proposed even more generous child allowances—$4,200 a year for each child 5 and under and $3,000 for those 6 to 17—for families with annual incomes less than $200,000. That likely means Senate Majority Leader Chuck Schumer has the 51 votes for making permanent a child-support allowance, and other moderate Republicans would pile in lest they be painted as anti-child in 2022.
Romney’s plan would add $112.5 billion to the cost of the CTC as it was before the ARA and be again in 2022 without any other legislative action. It would be awfully tough for Republicans to deny cries to end preferential tax treatment for capital gains, for example, to fund it.
It would encourage families with several children to work less. The combined effects of Biden’s proposed taxes on high-income earners, capital gains and estates would raise the intergenerational taxes on high-tech startups to about 70% for California residents.
Fewer people working and less investment in high tech is how the European Union became a welfare state that can’t grow or provide young people with enough meaningful work. And that appears to push down birthrates more than child benefits do to boost it.Peter Morici
Morici argues it would be better to "replace the personal and corporate income tax with a 14% value-added tax and offer every family a $4,000 per year payment."
That would eliminate taxes altogether on work and do less to discourage startups and productive investment than the current tax morass.Peter Morici
Click on the link below to read the full analysis in MarketWatch.com:
Neil Andrews says
There is value in providing products or services. Money is just a method of storing the value that you earned so that you can exchange it for something of value at a later time. If the government starts giving out money to people on a large scale without them having created something of value in exchange, the money no longer represents a store of value. It becomes worthless. Giving out money for free is a stupid and dangerous idea.
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What will liberals do when there are workers left to steal from? How will Democrats (and some so called Republicans) make good on their election bribes then?
Reading the Marketwatch (the financial sector Onion) article Morici actually advocates for $4,000 per CHILD, not family, per year. Once again, let's punish people who work, the childless worker, the older worker, to the benefit of those who feel entitled to the fruit of other peoples labor at little to no effort from themselves. Why penalize a woman, or a couple, who can't have children (even though they want to) and make them pay for other peoples kids?
It's not enough that we now provide free (to them) K-12 education/indoctrination, with poor results, now we have to pay them to just exist and reproduce?
There was a time not too long ago that when America was the Land of the Free, it referred to the right of the populace to live in freedom from government oppression. Free to live our lives in peace, practice the religion we wanted to, free from unreasonable search, free to speak, free to work and strive and reap the rewards from our efforts.
Now it seems to mean free college, free health care, free money, free food, free housing, free utilities, free everything my heart desires. At least free to me.
commented on to add "no" between "are" and "workers" in the first sentence.
Just put some in a higher tax bracket so they can get more for from taxes from you. Go figure there are not any companies that are going to pay more money to people to not work.Think the Democrats are not teaching people to fish just depend on being given fish for free every day. We all know how dependable this this Government is.
Pete Caldwell says
So why not adopt the FAIR TAX. National Sales Tax, Does away with the IRS in 5 years. Everyone gets a REBATE Monthly and no Income Taxes. This can work but the Dems will NEVER back this.
Read the book on the subject by Neal Bortz.
Jackie Herwaldt says
It's funny, I done see any politicians increasing social security income. My mom's SS income is a joke.
There are more votes to be gained by increasing government payments to families with children. This will ensure that the parents will vote Democrat, if they aren't already, and the children will be taught to vote Democrat.
This is another payout to Mexican families who now have the highest birthrates in America. It will probably increase the amount of money that is sent from America to Mexico.
Eternity Matters says
We are already seeing many companies who can't properly staff just because of a few "stimulus" checks. It will be a complete fiasco when there is guaranteed income. Very few people will want to work as the incentive will be removed.
Seniors are not worth anything to them. They'll be glad when we are all gone.
Should the Democrats succeed in their sham statehood for Washington, DC, does that leave their wage schemes in place?