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Work Matters, Despite What Congressional Democrats Think

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25.10.2021

Why are congressional Democrats breaking welfare again?

In March, they transformed the child tax credit into a monthly child allowance — no work conditions attached. If made permanent, as they are now trying to do, it would be the second-largest expansion of the welfare state in U.S. history.

The credit used to increase as low-income parents worked more. The allowance, however, goes to non-working families. Proponents insist that this giveaway won’t substantially affect low-income parents’ interest in working, but a new study has made it clear: Fewer low-income families will work.

Earlier reports have underestimated the effect of eliminating the Child Tax Credit’s pro-work incentives. But researchers at the University of Chicago have found that 1.5 million workers — 2.6% of all working parents — would exit the labor force if the child allowance is made permanent.

Accounting for the drop in work, the authors calculate that the child allowance would not ease deep child poverty (families making less than $18,945). This is a far cry from the 39% reduction in deep poverty the left promised.

Now Congress........

© The Daily Signal


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