Guaranteed Income Final

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Michael Krakowiak

Chandra Pasma's presentation on Guaranteed Income at the BIEN Canada conference in Ottawa, October 2009.

Business

BY CHANDRA PASMA, CITIZENS FOR PUBLIC JUSTICE Income Security for All Canadians

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One of the goals of the Affordable Care Act – or national health reform – is to make the purchase of health insurance simpler and more transparent for consumers. Launched on October 1, 2013, the Health Insurance Marketplace is a user-friendly web portal that will help consumers select the health plan that is right for them and their families. However, in advance of signing up on the Marketplace, many people will need additional information about their health insurance options, as well as guidance in thinking through these important and complex decisions. The In-Person Counselor (IPC) project will educate people about the new system, help them understand their health plan choices, and facilitate their selection of the plan that is right for them. The ILAACP will conduct public education activities in town hall meetings to be scheduled in Auburn Gresham, Chatham, and Greater Grand Crossing between October 1, 2013 and March 31, 2014

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Consider the CMS core measures and the data used to support the reporting. Which do you believe are the easiest to collect and which do you think are the most difficult to collect? The Hamilton Project • Brookings 1 Introduction The Earned Income Tax Credit (EITC) provides a refundable tax credit to lower-income working families. In 2011, the EITC reached 27.9 million tax filers at a total cost of $62.9 billion. Almost 20 percent of tax filers receive the EITC, and the average credit amount is $2,254 (IRS 2013). After expansions to the EITC in the late 1980s through the late 1990s—under Democrat and Republican administrations—the EITC now occupies a central place in the U.S. safety net. Based on the Census Bureau’s 2012 Supplemental Poverty Measure (SPM), the EITC keeps 6.5 million people, including 3.3 million children, out of poverty (Center on Budget and Policy Priorities [CBPP] 2014a). No other tax or transfer program prevents more children from living a life of poverty, and only Social Security keeps more people above poverty. Since the EITC is only eligible to tax filers who work, the credit’s impact on poverty takes place through encouraging employment by ensuring greater pay after taxes. The empirical research shows that the tax credit translates into sizable and robust increases in employment (Eissa and Liebman 1996; Meyer and Rosenbaum 2000, 2001). Thus, the credit reduces poverty through two channels: the actual credit, and increases in family earnings. This dual feature gives the EITC a unique place in the U.S. safety net; in contrast, many other programs redistribute income while, at least to some degree, discouraging work. Importantly, transferring income while encouraging work makes the EITC an efficient and cost- effective policy for increasing the after-tax income of low- earning Americans. Yet a program of this size and impact could be more equitable in its reach. Under the current design of the EITC, childless earners and families with only one child, for instance, receive disproportionately lower refunds. In 2014, families with two children (three or more children) are eligible for a maximum credit of $5,460 ($6,143) compared to $3,305 for families with one child. Married couples, despite their larger family sizes, receive only modestly more-generous EITC benefits compared to single filers.1 Childless earners benefit little from the EITC, and have a maximum credit of only $496—less than 10 percent of the two-child credit. Prominent proposals seek to mitigate these inequalities. President Obama’s fiscal year 2015 budget includes an expansion of the childless EITC, a concept outlined by John Karl Scholz in 2007 in a proposal for The Hamilton Project. Notably, MDRC is currently evaluating Paycheck Plus, a pilot program for an expanded EITC for workers without dependent children, for the New York City Center for Economic Opportunity (MDRC 2014). The recent Hamilton Project pr.

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