Posts Tagged ‘Poverty’

A Billionaire Saves, Two Words Disappear, and Three Provisions Protect

There’s more than one way to skin a cat (and reduce taxes). Warren Buffett, chairman of Berkshire Hathaway, has made a swap for Procter & Gamble’s interest in Duracell. The “cash-rich split-off” means that Berkshire Hathaway bought Duracell in exchange for its appreciated P&G stock, worth $4.7 billion. Capital gains taxes are not incurred since […]

Questions About Expanding the Childless EITC

As the idea of expanding the “childless EITC” gathers steam, it’s time to start thinking about what the next generation of worker credits should look like. Today’s EITC lifts millions of families out of poverty each year by providing a wage subsidy that encourages work. But it largely skips over childless adults. Politicians from President […]

How Rubio’s Anti-Poverty Plan Could Help Improve Aid to Low-Income Workers

Senator Marco Rubio (R-FL) has offered the outlines of an ambitious plan that he says would end poverty. One creative piece: Replace the well-known and highly effective earned income tax credit (EITC) with a monthly “federal wage enhancement” for all individuals with qualifying low-wage jobs. It is a bold idea. The EITC, along with the […]

News Flash: Antipoverty Programs Can Reduce Poverty

In 1998, when I was Deputy Assistant Secretary for Tax Analysis at the Treasury Department, I asked my staff expert on the Earned Income Tax Credit (EITC) how many people the EITC had lifted out of poverty. Her answer shocked me: technically, zero. Poverty statistics don’t account for the EITC or any other federal anti-poverty measure. […]