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The Political Scene | The New Yorker

The Child Tax Credit: One Small Step Toward Universal Basic Income?

The Political Scene | The New Yorker

The New Yorker

Barack, Washington, Wickenden, News, Obama, Politics, Wnyc, Lizza, President

4.33.9K Ratings

🗓️ 6 September 2021

⏱️ 24 minutes

🧾️ Download transcript

Summary

The child tax credit, received by more than thirty-five million families, isn’t entirely new. But the way it’s distributed is almost a revolution in American politics: instead of showing up once a year at tax time, the government also provides money ahead of time, in predictable monthly payments. Wide-scale, direct cash payments are anathema to Reagan-era austerity economics. Is this policy the first sign that that consensus may be coming to an end? David Remnick talks with Senator Michael Bennet, of Colorado, who campaigned for the Presidency on this issue in 2020, and is now fighting to extend the tax credits indefinitely. 

For Sheelah Kolhatkar, who covers economics and business, the child tax credit can be seen as a kind of scale model of universal basic income. She moderates a conversation between two academics on different sides of the issue: Michael Strain, a senior fellow and the director of economic-policy studies at the American Enterprise Institute, and Amy Castro, an assistant professor at the University of Pennsylvania. Castro leads the Stockton Experiment, a small-scale U.B.I. project in the California city that, she says, has surprisingly robust results.

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Transcript

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0:00.0

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Things people love.

0:48.1

I'm Dorothy Wickenden.

0:50.1

On today's Politics and More podcast, a look at America's changing relationship with the so-called social safety net.

0:57.9

First, David Remnick talks with Senator Michael Bennett of Colorado about the New Child Tax Credit,

1:03.9

which issues direct monthly payments to taxpayers.

1:07.9

Then Sheila Kolhakar talks with Michael Strain, a senior fellow at the American Enterprise Institute, and Amy Castro, an assistant professor at the University of Pennsylvania, about the benefits and drawbacks of a universal basic income.

1:27.3

Over the last couple of months, more than 35 million American families received checks in the mail from the federal government, payments for the child tax credit.

1:37.5

The idea of a family tax credit is not new. What's new is this. The money doesn't show up once a year at tax time.

1:45.6

Instead, the government gives some of it in advance, in predictable monthly payments.

1:50.7

And this can make a very big difference in people's lives.

1:54.1

The shift in policy owes a great deal to Senator Michael Bennett, a Democrat from Colorado.

2:00.2

Bennett is now pushing to make the changes become permanent.

2:04.6

Senator, you ran for president in 2020 largely on this issue, and let's just say that it didn't propel you to the top of the heap.

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