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An Assessment of Senator Romney's Family Security Act: Would it Really Reduce Poverty?

Author

Listed:
  • Ortigueira, Salvador

    (Washington State University)

  • Siassi, Nawid

    (TU Wien)

Abstract

We assess the Family Security Act---a plan presented by Senator Mitt Romney (R-UT) on February 4, 2021 to reform the tax/transfer system---in terms of its efficacy to achieve the stated objectives of increasing marriage rates and cutting child poverty at no cost to the government. The assessment is carried out through a microsimulation approach, using a dynamic model of savings, labor supply, household formation, and marital status. We find that while the plan would be highly effective at increasing marriage, it would reduce child poverty at the expense of increasing poverty among single-mother families and child deep poverty. Furthermore, the plan would entail a substantial cost to taxpayers.

Suggested Citation

  • Ortigueira, Salvador & Siassi, Nawid, 2021. "An Assessment of Senator Romney's Family Security Act: Would it Really Reduce Poverty?," Working Papers 2021-1, School of Economic Sciences, Washington State University.
    • Handle: RePEc:ris:wsuwpa:2021_001
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    More about this item

    Keywords

    Family Security Act; household decisions; cohabitation and marriage; poverty.;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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