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Estimating the Labor Supply Response to a Permanent Child Tax Credit Expansion

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CTC-Labor-Response

Estimating the Labor Supply Response to a Permanent Child Tax Credit Expansion

Project GitHub Repo: https://github.com/grantseiter/CTC-Labor-Response

Documentation : https://grantseiter.github.io/CTC-Labor-Response/

Note:

The American Rescue Plan Act of 2021 (ARPA) temporarily expanded the child tax credit (CTC) for 2021 by allowing households to claim up to $3,600 for each child under age six and $3,000 for each child age six to seventeen. The credit was also made fully refundable and advanceable.

We analyzed the impact of a permanent expansion on employment using Tax-Calculator, an open-source microsimulation model of the federal individual income and payroll tax, along with a method similar to the model and set of assumptions employed by the Congressional Budget Office (CBO).

This repository contains the relevant replication files.

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Python

Authors

  • Alex Brill - American Enterprise Institute (AEI), Washington, D.C.
    • Alex Brill is a resident fellow at the American Enterprise Institute (AEI), where he studies the impact of tax policy on the US economy and the fiscal, economic, and political consequences of tax, budget, health care, retirement security, and trade policies.
  • Kyle Pomerleau - American Enterprise Institute (AEI), Washington, D.C.
    • Kyle Pomerleau is a resident fellow at the American Enterprise Institute (AEI), where he studies federal tax policy. He writes on various tax policy topics, including corporate taxation, international tax policy, carbon taxation, and tax reform.
  • Grant M. Seiter - American Enterprise Institute (AEI), Washington, D.C.
    • Grant M. Seiter is a research assistant at the American Enterprise Institute (AEI).

Disclaimer: The American Enterprise Institute for Public Policy Research (AEI) is a nonpartisan, nonprofit, 501(c)(3) educational organization and does not take institutional positions on any issues. The views expressed here are those of the author(s).

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