tax policy

3:43 pm
Fri March 15, 2013

Federal Earned Income Tax Credit is successful and popular

Lead in text: 
Turns out the Earned Income Tax Credit is one thing all administrations beginning with Reagan’s have agreed is a good idea. And it really works. Listen to those who literally sing its praises on npr.org.
Last year, a federal program called the Earned Income Tax Credit took about $60 billion from wealthier Americans and gave it to the working poor. And here's the surprising thing: This redistribution of wealth has been embraced by every president from Ronald Reagan to Barack Obama.
Policy
6:00 am
Wed January 9, 2013

The link between savings and upward mobility

Monique Norton is saving money so she can buy a used car and rent an apartment.
Credit Jennifer Guerra / Michigan Radio

Be honest: How many of you made a New Year's resolution to save more money?

Saving money can be especially hard to do in a tough economy, so kudos to you. For families at the bottom of the economic ladder, saving money can make a real difference.

Erin Currier directs the Pew Economic Mobility Project. She says "when low income families can develop their own savings, their own assets, their children are significantly more likely to move up the income ladder."

Currier's team did a 2009 study called "A Penny Saved is Mobility Earned," and they found that savings and upward mobility are linked together, especially for families in the lowest income bracket.

Children of low-saving (i.e., below median), low-income parents are significantly less likely to be upwardly mobile than children of high-saving, low-income parents.

Seventy-one percent of children born to high-saving, low-income parents move up from the bottom income quartile over a generation, compared to only 50 percent of children of low-saving, low-income parents. 

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