IDEAS home Printed from
   My bibliography  Save this article

Improving Efficiency and Equity of Child-Related Federal Tax Policies


  • Robert Cherry

    () (Department of Economics, Brooklyn College of The City of New York)


Proposal combines EITC, child credit, and dependent allowance into one child-related benefit program so that the tax code is simplified. It allows the phasing down of benefits to be less than 6 percent so that the marginal tax rate is reduced, especially for families that are currently subject to both the federal tax rate and the EITC phase-out rate. It reduces the marriage penalty for single heads with incomes below $20,000. It eliminates the middle class parent penalty: the current situation in which families with incomes between $30,000 and $60,000 receive less child-related benefits than either wealthier or poorer households. Finally, though it only costs modestly more than the Bush child credit proposal, it is more effective at lowering marginal tax rates and marriage penalties.

Suggested Citation

  • Robert Cherry, 2001. "Improving Efficiency and Equity of Child-Related Federal Tax Policies," Eastern Economic Journal, Eastern Economic Association, vol. 27(3), pages 309-322, Summer.
  • Handle: RePEc:eej:eeconj:v:27:y:2001:i:3:p:309-322

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Child; Families; Marriage; Tax;

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:27:y:2001:i:3:p:309-322. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.