The Conservative Proposal To Take Money from Poor Single Moms and Give It to Married Couples

The Heritage Foundation has an idea: Take from the poor and give to the rich

Last week, I wrote about the Heritage Foundation’s Saving America by Saving the American Family: A Plan for the Next 250 Years. The plan is, essentially, to make women drop out of school, marry young, have tons of babies, rely financially on their husbands, be unable to divorce, and wind up in the poor house if they don’t follow these rules. But I wanted to zero in specifically on the policy section of the piece, which comes at the very end and which I haven’t seen get the coverage it deserves. Because what the Heritage Foundation is proposing is a massive cash transfer from poor single mothers to better-off married couples. This really is the plan: Take from the poor to give to the “right” kind of families. Make poor mothers work, and pay better-off ones to stay home. Further impoverish single mothers to force them to marry.

The Heritage Foundation wants to eventually end cash welfare as we know it (“Credits designed specifically to benefit poor single mothers may be well intended, but they have proven to incentivize single motherhood in poor communities,” Heritage laments). They don’t propose totally doing away with welfare benefits here, I suspect because they realize that would be a nonstarter. But they do propose taking resources that currently mostly benefit poorer families and redirecting them to wealthier ones, so long as those wealthier families have married parents. The Heritage proposal would only give its proposed benefits to married couples (policies should “privilege marriage as directly and explicitly as possible,” Heritage writes, emphasis theirs). It would only give benefits to married couples in which one partner works and makes above a certain income. And it would incentivize women dropping out of the workforce… unless they’re poor or single.

Here are the specifics.

1. Child tax credits only for married couples who are the child’s biological parents, who are working, and who make at least $30,500. The Heritage proposal would get rid of the Earned Income Tax Credit, because that credit gives more money to struggling single parents than better-off married ones, as well as the Child Tax Credit, and replace them with what they call a Family and Marriage (FAM) tax credit of $4,418 per child per year for four years. But this credit would phase in for families once they’re earning $30,500 per year — in other words, poor families wouldn’t qualify. It would only go to married parents — single parents wouldn’t qualify. It would only go to biological parents — step parents wouldn’t qualify. A person could be working full-time, but even if they’re earning above minimum wage, they may not qualify for this tax credit.

2. Bonuses for larger families — but only for married couples, only for biological parents, and not for the poor. Additionally, Heritage proposes a 25% per-child bonus to their FAM tax credit for third children and beyond. But, again, poor families are out of luck, as only couples with at least one working spouse qualify, and that spouse has to make at least $30,500.

3. More money for higher earners, none for the lowest. The FAM credit phases in at $30,500, and goes up from there relative to income. That’s right: This is government family support that gives more money to families that already have more money. And it gives the most money to families that are the most stable: Those with two married parents who make more than six figures. The credit doesn’t begin to scale down until a family makes $110,000, and even then, the wind-down is small (beginning at just 5%). Why set up a program that gives people more money as they make more money? Because “the FAM credit’s phase-in would incentivize work.” All of this means that a married couple with three children making $400,000 a year would get $14,000 additional dollars from the US taxpayer — while a single mom making $20,000 a year would get nada.

   

4. No help after a child’s fourth birthday. As it stands, parents can claim the Child Tax Credit until a child’s 17th birthday. The Heritage plan cuts parents off when their kid turns four. They claim that these early years are when parents need the most help. But children don’t stop needing food and a roof over their heads once they’re kindergarten age. The Heritage Foundation is clear that the purpose of this plan isn’t to support children, but to incentivize parents to have more of them: “The FAM credit is designed specifically for families with newborns or young children. Lawmakers interested in family policy may be inclined simply to expand the CTC. However, this approach would be inefficient as a family formation incentive. Only a small fraction of the benefit would go toward new parents, while most of it would go to families that are already formed.” They continue: “many other family benefits, such as the CTC, are backloaded to later in life when many parents are on more solid financial footing and may be past their prime child-bearing years.” Emphasis mine, because this is truly stunning: The Heritage Foundation only wants to give parents tax credits for their (expensive) children if those parents (mothers) are in their “prime child-bearing years” and might make more babies. Eggs too old? No child tax credits for you.

5. Pay women to stay home. The Heritage Foundation could have proposed a generous paid leave program, which would allow parents of newborns to stay home and care for them in that crucial first year. But their aim is not to make sure that young children receive the best possible care. Their aim seems to be to get women out of the workforce. And so they’ve instead offered a $2,000 per-child credit for one parent (almost always the mother) to stay home and care full-time for her child — but again, this only applies to married couples where one spouse (almost always the husband) is working and makes more than $30,500 per year. You’re a single mom who wants to stay home with your child? Tough luck, get to work. You’re a low-income married parent who wants to stay home with your child? Tough luck, get to work. If the concern really were for children — if the view really was that young children are best off being cared for at home by a parent — then this policy would apply to all parents of young children. But that’s not the concern. The concern is that women aren’t living their lives in the way Heritage deems acceptable.

6. Fund this whole scheme by getting rid of Head Start. Head Start is an incredible program that has had vast positive impacts, increasing high school and college graduation rates, adult incomes, health outcomes, and overall wellbeing. Studies have found it even decreases child abuse and neglect. This proposal would effectively end it, and use the money saved to give tax breaks to wealthy married couples with children.

7. Pay people to marry young. The final Heritage policy is a $2,500 deposit into a savings account for every new baby born in the US — but the only way to get the full benefit of that money as an adult is to marry well before the age of 30. That is, when an American is born, the government will deposit $2,500 into a savings account for them, which they cannot touch until they either marry or turn 30. At either marriage or age 30, they can start to withdraw from the account, but only over three years — so about a third of the original value per year. They get the full withdrawal amount each year (roughly one-third of the total account value) if, in each year, they are married but not yet 30. If they’re over 30, whether they’re married or not, they pay a tax penalty. In other words, to get the full benefit, you have to marry by 27 — below the average age of first marriage for women (28.6) and men (30.2) alike. Again, the point is not to incentivize marriage; it’s to incentivize women especially marrying as young as possible, despite early marriage being tied to higher divorce rates.

xx Jill