And though the universal benefit would shrink as wages go up, it wouldn't phase out completely. Of course, no tax-reform proposal will go anywhere without political backing. Steuerle is hopeful. He believes the potent combination of minimizing disincentives to work, reducing the marriage penalty, increasing the benefits to working families, and simplifying the tax system offers the potential for creating a bipartisan push for enactment. Many people are upset that so many poor children live in this country at a time of unprecedented prosperity and wealth creation.
Educational reform is key to reducing income inequality in the long term.
But school reform takes time. Do it, Congress. Farrell is contributing economics editor for Business Week. The McGraw-Hill Companies Inc. All rights reserved.