Examining the Reach and Impact of Tax Credits and Transfers at the State and Federal Level

Session Submission Type: Panel

Abstract

This panel brings together four papers that offer empirical insights into how diverse households experience tax credits and transfers—and how those experiences can inform more effective policy.

Two studies investigate the implementation and impact of state-level tax and transfer programs. The first paper leverages administrative data, in-depth interviews, and focus groups to identify barriers that prevent underserved families from claiming Maryland’s state tax credits. The second analyzes the long- and short-term effects of Alaska’s Permanent Fund Dividend on credit outcomes.

Two other papers study the impact of policy changes implemented under the American Rescue Plan Act. One study examines household consumption during the 2021 Child Tax Credit (CTC) advance payment period to explore the behavioral mechanisms that underlie parents’ spending decisions. The final paper investigates how expanded EITC eligibility impacted the well-being, mental health, and food security of older adults during the pandemic recovery period.

Each study provides insight into the impact of tax and transfer programs on a unique constituency. Together, these papers highlight the behavioral dynamics of cash transfer use, the persistent challenges of program access, and the broader financial and well-being effects of public cash support. In assessing the impact and equity of tax and transfer programs, this panel offers insights that can inform better program design and delivery.

Policy Area

• Poverty and Income Policy

Chair

• Elizabeth Tong, University of Washington

Discussant

• Leah Hamilton, Appalachian State University

Organizer

• Emily Elizabeth Dobson, University of Maryland, College Park

Individual Presentations

• Helping Maryland Connect Underserved Families to Crucial State Tax Credits - Presenting Author: Luisa Godinez-Puig, Urban Institute

• Universal Cash Transfers and Credit Outcomes: Evidence from the Alaska Permanent Fund Dividend - Presenting Author: Guangli Zhang, Washington University in St. Louis

• Public Support, Private Choices: The 2021 Child Tax Credit and Parental Spending Behavior - Presenting Author: Emily Elizabeth Dobson, University of Maryland, College Park

• Effects of Expanded Access to the Earned Income Tax Credit on Household Well-being among Older Adults - Presenting Author: Madelaine Reid L'Esperance, University of Alabama