Kalena Thomhave

Kalena Thomhave is a writing fellow at the Prospect.

Recent Articles

Even the CBO Says the GOP Tax Reform Will Incentivize Corporate Offshoring

The Congressional Budget Office’s analysis of the new tax law suggests it could incentivize companies to offshore investments and jobs, which is directly at odds with GOP claims about the tax law.

Lars Halbauer/picture-alliance/dpa/AP Images
Lars Halbauer/picture-alliance/dpa/AP Images A fter the release of the GOP’s tax reform plan, several outlets, including the Prospect , noted that new tax provisions would incentivize corporate offshoring, instead of protecting jobs and raising wages as promised. But recently, even the Congressional Budget Office, the independent entity charged with nonpartisan analysis for Congress, agreed that tax reform could encourage companies to stash profits overseas—and also offshore American jobs. In December, House Speaker Paul Ryan published on his website that the Tax Cuts and Jobs Act benefits “job creators of all sizes” as it “Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.” Observers like the Institute on Taxation and Economic Policy and the Tax Policy Center pointed out that that wasn’t the case. According to the Center on Budget and Policy Priorities...

Audits Endanger Tax Credits for the Working Poor

When workers who claim the Earned Income Tax Credit are audited, they’re less likely to claim the credit, a powerful anti-poverty tool, in the following years.

(AP Photo/Brennan Linsley)
(AP Photo/Brennan Linsley) A professional tax preparer views a Form 1040. I n 2017, 27 million families received the Earned Income Tax Credit (EITC), a refundable tax credit available to people with low incomes who work. While the EITC has been described as a subsidy for low-wage employers, the credit still materially puts, on average, $2,445 in the pockets of low-income people. But a new paper from the National Bureau of Economic Research (NBER) finds that EITC claimants who are audited are less likely to claim the credit in the following years. This is particularly significant because House Republicans recently proposed expanding Internal Revenue Service review of EITC returns. The NBER researchers looked at the behavior of taxpayers who received the EITC—both those who were audited (through correspondence audit ) and those who weren’t. Their study found that, after receiving a correspondence audit, people who claimed the EITC in a particular year were 30 percent less likely to...

A Tough Week for the Social Safety Net

States from Tennessee to Wisconsin are mirroring the Trump administration’s enthusiasm for eviscerating anti-poverty programs.

(AP Photo/Scott Bauer)
(AP Photo/Scott Bauer) Wisconsin Governor Scott Walker describes his proposal to reduce food stamp benefits for parents who do not meet work requirements on January 23, 2017. T he past few days have been difficult, on both the state and federal level, for the country’s already frayed social safety net. Several states, taking their cues from the Trump administration, have restricted and made cuts to anti-poverty programs, and this week, too, the federal government has joined in the shredding of welfare assistance. The week began with the tiniest of hopes, as the Republican-dominated Tennessee State Legislature voted Monday to raise cash assistance levels for the first time in 22 years. But the abysmal increase brings total benefits for a family of three to just 16 percent of the poverty line, and that same state legislature is moving forward with Medicaid work requirements that could strip health care from thousands of adults with children. In Wisconsin on Tuesday, Republican Governor...

Tennessee Republicans Experience Cognitive Dissonance on Poverty

Tennessee has increased welfare benefits for the first time in 22 years, while also proposing to kick people off medical and food assistance.

AP Photo/Mark Zaleski Tennessee Governor Bill Haslam speaks at the General Assembly W ith this week’s “welfare reform” executive order from President Trump, which calls for work requirements in public assistance programs across the board, the outlook for anti-poverty programs is bleak. And this current anti-welfare climate has also made it easier for states to overhaul their public assistance programs. Tennessee, which has one of the highest poverty rates in the country, is one such state. Republican Governor Bill Haslam has proposed a number of welfare reforms that he has asked the Republican-controlled legislature to pass. In two moves supported by the Trump administration, the governor has already announced that the state will further limit food assistance for adults without children, and the legislature may well impose work requirements on Medicaid recipients ( using dollars earmarked for the cash assistance program to implement and monitor those requirements. But at least some...

Welfare Drug Testing Promotes Stereotypes, Not Efficiency

Despite a clear lack of evidence of significant drug use among welfare recipients, lawmakers in at least two states are moving forward with plans to require drug screening for individuals seeking assistance. State legislators in Illinois and Iowa have introduced bills that would make drug testing a prerequisite for Temporary Assistance to Needy Families (TANF), the U.S. cash assistance program for very poor families. If passed, the states would join more than a dozen others in mandating drug testing for welfare applicants.  

But the outcomes of those existing state testing programs contradict the harmful and racist stereotype of the drug-addicted welfare user.

Over the past several years, proposals to drug test the poor applying for or receiving TANF have been quite popular among a number of conservative states—and some states have begun attempting to expand drug testing into other assistance programs, too. Wisconsin drug tests not just TANF applicants, but has moved forward with a plan to also test Supplemental Nutrition Assistance Program (food stamps) applicants (without federal approval, which may be illegal). Wisconsin’s Republican Governor Scott Walker even wants to drug test those who apply for Medicaid—potentially barring people from health care when they could perhaps need it most.

The Illinois bill would also require that SNAP applicants be drug tested, pending federal approval. (Not being a conservative stronghold, it’s probably unlikely that the Illinois proposal will pass.) And the Iowa bill proposes drug testing all recipients of public assistance.

However, the results of these drug-testing initiatives have amounted to a wasteful use of funds when one considers how few welfare recipients actually test positive for drugs. An analysis by ThinkProgress found that, in 2016, 13 states spent $1.3 million on welfare drug testing, with just 363 people testing positive.

Since the data don't exactly justify the expense of these programs, one should consider other reasons that conservative legislators keep advancing legislation like this—namely, to attempt to justify a certain narrative. Without “immorality” and other individual characteristics to blame for poverty, what’s left? A systemic canker—that threatens the American narrative of hard work and equal opportunity.

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