Thread by @ChuckCBPP

With the temporary provision moving, there is growing excitement to make the Child Tax Credit expansion permanent. Along with this push, a healthy debate has begun on design elements

Here I want to address one small part of this design discussion which relates to EITC take-up

One key question – of which much more deep digging is needed – is on what roles the IRS and SSA should play in administering a permanently expanded child tax credit/child allowance.

As part of this IRS/SSA discussion, I’ve seen the following thought train a few times: the EITC take-up rate is low, therefore, the SSA should administer the expanded Child Tax Credit. This strikes me as incomplete at best.

The overall EITC take-up rate is 78% but embedded in this figure is a take-up rate of just 65% rate for childless adults, many of whom receive a tiny EITC and, regardless, are not relevant here.

The take-up rate for the EITC for families with children is higher than 78%, ranging from 82 to 86%.

There indeed is a gap between 86% and 100% and much has been done and needs to be done to narrow that gap. And, I think the goal for take-up of an expanded Child Tax Credit should be 100%.

But keep in mind there are people – picture someone has worked intermittently off the books for years – who know they could get an EITC but don’t file for it for various reasons

I think one also should ask, compared to what? While the take-up rate for the EITC for families with children ranges from 82-86%, the take-up rate, for example, for SSI is 58%. See pgs 53-54 for others bit.ly/3sxewAV

I think the discussion on what roles the IRS and SSA should play is an important one. Both have advantages and I could see both playing a significant role and more digging is needed. My small point here is that I don’t think the EITC take-up rate tilts that balance

To learn more about the SSA as this unfolds, follow @kathleenromig, she is an expert and a good human

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