Hillary Clinton wants to double the child tax credit for children under 5 and increase the refundability of the credit for more low-income households. Her proposal will further exacerbate the tax disparity between childless households and families with young children. And, by adding substantially to the federal deficit, the policy will shift the cost of raising today’s children onto future generations.
Hillary Clinton proposes doubling the child tax credit for children under 5 (from $1,000 to $2,000) and expanding the refundability of the credit to lower-income families. Her proposal 1) is expensive, 2) increases the deficit, 3) is unfair to childless taxpayers, 4) benefits a narrow group, 5) has an arbitrary cutoff, and 6) is just the beginning.
To broaden the tax base, lawmakers will need to do more than close obscure tax loopholes. They will need to limit itemized deductions. These tax breaks costabout $176 billion in 2016 or enough to finance a nearly 13% tax cut for every individual income tax bracket. And they add significant complexity to the tax code.
At an event on promoting economic growth amid a populist backlash, Alex Brill discussed the impact of the corporate tax on workers: “Politicians have used the tax policy debate in campaigns for forever, and they generally use tax policy ideas in a very direct way: ‘My tax plan will affect your tax bill this much — directly.’
On July 1, the state of Vermont is set to impose a $1,000 per day per product fine on any food manufacturer who fails to disclose on the product label if any ingredients contain genetically modified organisms (GMOs). The effect of the new law will be to reduce choices for consumers, limit supply, and increase food prices. And these consequences will be felt far beyond the tiny state’s borders.
