All in the Family

Despite what some might say, a policy is not a bad idea just because Mitt Romney proposed it. His “Family Security Act,” which offers a child allowance and financial support for marriage, is therefore worth careful consideration. America has a family policy of sorts, and Romney’s plan brings greater clarity to it.

I will avoid the weeds as much as possible, as others have already gone into them. The centerpiece of the proposal consists of direct cash payments or child allowances to parents of children. Our current programs are scattered, indirect, and retroactive (one accrues benefits only after being taxed). The Romney plan replaces these subsidies with direct monthly payments, amounting to an increase in benefits for most people. It is budget neutral since it mostly consolidates America’s various child-support programs, such as the Child Tax Credit and Temporary Assistance for Needy Families, into one. Married couples would get a bump in support depending on how many children they have ($4,000 more for couples with three kids; $3,000 for couples with two; couples with no kids would have no change). Singles with children would have a more modest bump. Think of the child allowance as centralizing subsidies and turning them into direct payments.

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