Thread by @dashching

@crampell @JStein_WaPo This is a hugely important question. And one where the experience of other countries has been too often glossed over, I think. Short (maybe) thread:

@crampell @JStein_WaPo Other countries with fully-integrated tax/benefit systems that the US might be envious of (UK, Aus, NZ) have nevertheless often still caused massive hardship (& political firestorm) over creating reconciliation debts for low-income people.

@crampell @JStein_WaPo Here are some examples. Some of this is income reconciliation, some of it family changes, some of it implementation glitches. The basic point is that you want to do everything possible to avoid creating this type of hardship for families. Safe harbors should be very robust.

@crampell @JStein_WaPo Australia, 2015. 350k families overpaid family benefits, coupled with aggressive debt collection tactics (remember the US now has private debt collection for IRS debts....)
smh.com.au/politics/feder…

@crampell @JStein_WaPo New Zealand, 2008: interest charges on overpaid "Working for Families" tax credits. Mostly due to income changes -- not an issue for CTC advance, where the main issue will be family changes -- but shows hardship of reconciliation you want to avoid. stuff.co.nz/national/71347…

@crampell @JStein_WaPo Here's an NZ example; with the CTC advance the issue would not be an income change but a child changing residence -- and without a robust safe harbor, the amounts paid back would be far larger.

@crampell @JStein_WaPo UK, 2014. "Pursuit of tax credit overpayments turns nasty as debt collectors hound the poorest"

In this UK case issue = implementation glitches.

But here, need to avoid recipe of potentially large reconciliation debts + private debt collection

independent.co.uk/news/uk/politi…

@crampell @JStein_WaPo These countries made policy choices, & the resulting hardship for families & political firestorm are a lesson for US lawmakers now.

A very robust safe harbor to protect families from having to pay back large CTC amounts is a *must have* when advancing credits.