Tax Policies That Effectively Aid Near-Poor Working Mothers

In response to a previous Spotlight commentary, Robert Cherry, professor of economics at Brooklyn College, examines how changes in tax policies can aid low-income working mothers. The author challenges assertions made in a commentary by the American Enterprise Institute's Kevin Hassett and Aparna Mathur, who argue that to reduce poverty, the current tax system has to be simplified and more effectively targeted at low-income families. Although Cherry agrees with Hassett and Mathur's recommendation to simplify tax programs, he contends that additional policies, beyond simplifying tax credits, are needed to help near-poor working mothers who need child-care assistance but earn too much to qualify for federal and state programs. Among his recommendations, Cherry proposes reducing the marriage penalty and lowering the rate at which tax credits are gradually reduced or phased out as earnings increase.

Read more online at: http://spotlightonpoverty.org/ExclusiveCommentary.aspx?id=38f375d5-ca2c-467b-8ff9-d21485ee9b77