Abstract: The United States needs to consider that each of its citizens is entitled to live at a decent level and the opportunity should exist for every child regardless of how and where the family chooses to live. Any income support plan -- however it is implemented -- should adhere to certain basic principles: 1) it should provide strong incentives to work; 2) it should contain adequate safeguards to prevent abuse; 3) it should guarantee an income floor equal to 40% of the median for families of 4 with appropriate adjustments in families of other sizes and types; and 4) it should give the parent with primary child-rearing responsibilities a legitimate choice of whether to work or stay at home. Income guarantees that meet these standards could be created in many forms but focus here is on a simplified version of a credit income tax. The credit tax is an easily administered and straightforward plan that makes it possible to see how reforms affect income at different levels. It replaces most current transfer systems with a revised version of the income tax system. All current social benefit programs that are keyed to income -- primarily the welfare system and food stamps -- would be replaced by the unified credit tax program. It is shown in table form how this scheme would work at varying income levels for a family of 2 parents and an older and a younger child. The proposals suggested assure that almost all families with 2 parents can in a full-employment economy with guaranteed jobs for heads of households have at least 1 parent working to support the family. A major goal of an income-support policy is assistance for families who are working but not earning enough to live decently. A support policy must carry a bottom line a floor for those families without other means of support either temporarily or because no one in the family is able to work. It is proposed that for a family of 4 the income floor be set every year at 40% of median family income for families of that size or level.
Publication Year: 1977
Publication Date: 1977-01-01
Language: en
Type: book
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Cited By Count: 80
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