Comparing Recent Income Maintenance Proposals
As we approach the 2020 Presidential election, we compare recent income maintenance proposals and discuss how design affects costs and poverty impacts. Andrew Yang has proposed a universal basic income (UBI) called a Freedom Dividend; Representative Rashida Tlaib has proposed a negative income tax (NIT) in her Building Our Opportunities to Survive and Thrive (BOOST) Act; and, Senators Michael Bennet and Sherrod Brown, and Representatives Rosa DeLauro and Suzan DelBene have proposed an unconditional child allowance by making the Child Tax Credit (CTC) fully refundable in the American Family Act (AFA). The proposals differ in benefit generosity, degree of means testing (or universality), categorical eligibility, and financing and have wide-ranging effects on poverty and inequality.