Can tax law produce healthier babies? Those aren’t the kinds of questions most tax experts focus on, but Professor Diane Whitmore Schanzenbach shows how the design of our tax laws can affect people in profound ways. In this episode we discuss the Earned Income Tax Credit and how it has affected the lives of millions of Americans living in poverty.  

The EITC has drawn low-skill mothers into the workforce more effectively than even optimistic observers in the mid-1990s might have hoped. It has also taught us important lessons about how the tax tools we use to help our most vulnerable neighbors can affect everything from whether they eat healthy food to the birthweight of their infants. Schanzenbach tells us what she has learned about the limitations and possibilities of delivering hope through the tax law.  

The pencil question comes from an article by Julie Roin.

The Tax Maven

[email protected] (Diane Whitmore Schanzenbach, Steven Dean)

Investing in Children's Potential with a Tax Credit (Diane Whitmore Schanzenbach)

DEC 1, 202022 MIN
The Tax Maven

Investing in Children's Potential with a Tax Credit (Diane Whitmore Schanzenbach)

DEC 1, 202022 MIN

Description

Diane Whitmore Schanzenbach is the director of the Institute for Policy Research at Northwestern University and the Margaret Walker Alexander Professor at the university. From 2015-2017, she was the director of the Hamilton Project, an economic policy initiative housed at the Brookings Institution in Washington, DC. She is also a research associate at the National Bureau of Economic Research, a research affiliate of the Institute for Research on Poverty, and a nonresident senior fellow in economic studies at the Brookings Institution.

Whitmore Schanzenbach studies issues related to child poverty, including education policy, child health, and food consumption. Much of her research investigates the longer-run impacts of early life experiences, such as the impacts of receiving SNAP benefits during childhood, the impacts of kindergarten classroom quality, and the impacts of early childhood education. She recently served on the Institute of Medicine’s Committee on the Examination of the Adequacy of Food Resources and SNAP Allotments.

This conversation was recorded in 2019. Since the COVID-19 pandemic struck, Diane has been researching the effects of the pandemic on food insecurity in real time. She also has created an app with an IPR summer undergraduate research assistant that tracks measures of food insecurity across all 50 states.

Our student quote is read by Aly Mariani.

Resources:

  1. Diane Whitmore Schanzenbach’s bio.
  2. Daniel Shaviro’s blog post about her recent visit to the NYU Tax Policy Colloquium
  3. Read some of Schanzenbach's blog posts.
  4. Selections of Schanzenbach’s research
  5. Follow Schanzenbach on Twitter: @dwschanz.
  6. The student quote comes from Michael Graetz’s 2001 Erwin Griswold Lecture for the American College of Tax Counsel.