Nixon’s EITC implemented Friedman’s NIT only for workers

Evidence

By 1972, after a round of heavy revisions, the Nixon plan was again definitively defeated in the Senate. The year after the defeat of Moynihan’s plan, however, Nixon was able to introduce two more modest plans that would become his lasting legacy for social policy. The first was the Supplemental Security Income (SSI) that would provide a federally guaranteed income to the blind, aged, and disabled. Second, and perhaps more important, was the Earned Income Tax Credit (EITC), patterned after Friedman’s NIT but restricted to those who worked. — Anton Jäger and Daniel Zamora Vargas, Welfare for Markets, 197

Categorization

  • XREF: connects to: Friedman’s poverty floor was political, not economic, necessity. — Anton Jäger and Daniel Zamora Vargas, Welfare for Markets: A Global History…, 118; New Deal Keynesians favored services and full employment over direct cash transfers — Anton Jäger and Daniel Zamora Vargas, Welfare for Markets: A Global History…, 143; Friedman endorsed vouchers and NIT tactically to dismantle government programs — Angus Burgin, The Great Persuasion: Reinventing Free…, 495

Broader Connections