Welfare Reform and the Role of Tax Policy

Posted: 9 Aug 2001

See all articles by Diane Lim Rogers

Diane Lim Rogers

Joint Economic Committee, Democratic Staff

Alan Weil

Government of the United States of America - Congressional Budget Office (CBO)

Abstract

This paper explores the often-neglected relationship between welfare reform and tax policy. It sets forth the objectives that underlie welfare reform, then compares expenditure-based and tax-based policy strategies that states and the federal government are taking. The examination suggests that, although they promote the similar broad goals of self-sufficiency and family formation, tax credits such as the Earned Income Tax Credit (EITC) function differently from expenditure-side programs in several ways, and thus they should not be considered perfect substitutes. Those who formulate and evaluate welfare-reform policies need to better consider how tax policies toward low-income families integrate with their expenditure-side counterparts.

Suggested Citation

Lim Rogers, Diane and Weil, Alan, Welfare Reform and the Role of Tax Policy. National Tax Journal 53, No. 3, Part 1. Available at SSRN: https://ssrn.com/abstract=240712

Diane Lim Rogers (Contact Author)

Joint Economic Committee, Democratic Staff ( email )

Ford House Office Building
2nd & D Streets, SW
Washington, DC 20515
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202 224 5171 (Phone)

Alan Weil

Government of the United States of America - Congressional Budget Office (CBO)

Ford House Office Building
2nd & D Streets, SW
Washington, DC 20515
United States

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