On Friday, November 21, Representative Rashida Tlaib introduced a comprehensive “Economic Dignity for All Agenda” (EDAA) consisting of three bold legislative proposals: updated versions of the End Child Poverty Act and the BOOST Act, alongside the new Baby Bonus Act. Together, these bills represent one of the most ambitious attempts to restructure America’s social safety net. While each component targets a specific demographic, the agenda as a whole establishes a universal system of economic security from infancy through retirement age.
Using PolicyEngine’s microsimulation model, I calculated the overall impact of the agenda. The results are nothing short of remarkable.
Before diving into the numbers, it’s worth understanding what each component does.
Families welcoming a child into the world experience a significant decline in earnings during the months before and after birth. Compounded by the fact that the United States remains the only developed-world country without guaranteed parental leave, families routinely experience economic insecurity during what should be a special time in their lives. The Baby Bonus Act would provide a one-time $2,000 payment to families with a newborn. The bonus is able to be claimed at birth or two months before the child’s expected due date. This simple, yet flexible payment allows families to offset the cost of pregnancy, supplement a few weeks of unpaid leave, or purchase everything necessary to care for their newborn. The Baby Bonus payment is adjusted for inflation and can be claimed by adoptive parents, including those utilizing surrogacy.
The United States currently provides two tax credits, the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC), to families with children. Both have a phase-in structure, excluding low-income families and have administrative issues leading to over- and underpayments. The End Child Poverty Act (ECPA) consolidates the tax credit mess into a universal child…
Auteur: David Trimmer
