economic policy proposals
“We can’t seem to get ahead.”
I have been hearing some version of this from every corner of the 9th District. it is my centerpiece.
Of course there could be a thousand different ways to propose fixing the economy, from the no-cost to the exceptionally expensive. There will also be good ideas that can’t get bipartisan support. So below I outline four economic policy proposals that I believe are very important and could actually be signed into law…even now.
Read below for a zero-cost idea, a low-cost pilot, an important bill that needs more extensive appropriations, and a revised regulatory framework for the FDA that requires re-thinking how we frame life-saving, cost-saving clinical trials research. The point of these examples is that we need to do things that both put money in folks’ pockets right now, and we need to do things that will have a longer-term effect.
A Revenue-Neutral Income and Child Care Bill
The Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) are two of the most effective anti-poverty tools in the U.S., but both are currently delivered as lump-sum annual payments. That timing doesn’t work well with how most working families manage expenses like rent, groceries, and childcare, which of course happen every month. I propose modernizing both credits to allow for monthly or quarterly payments, without changing eligibility criteria or benefit levels. What is really important to know is that this has been done before. The successful rollout of the 2021 monthly Child Tax Credit proves this approach is feasible. The IRS already receives real-time wage data through W-2 filings and could implement a secure, opt-in system where families receive partial advances of their credit throughout the year and reconcile any differences at tax time.
Delivering these credits more frequently would help families smooth consumption, reduce reliance on high-interest credit, and better plan their budgets. This reform does not increase the size of either credit, which makes it budget neutral, while maximizing the value of existing programs. A hybrid option could also work—one that combines automatic enrollment with online opt-out flexibility so that it would ensure high participation but also preserve family choice.
A Pilot Jobs Bill: Electricians and Nurses
The country currently faces shortages for many types of skilled labor. What’s more, these jobs provide meaningful careers, not just a paycheck. Two professions that face serious labor shortages (and there are excellent arguments for many others) are electricians and nurses. The United States faces a projected annual need for approximately 81,000 electricians and 189,000 registered nurses nationwide. Illinois alone will face a shortfall of 15,000 nurses by 2025, with the 9th District experiencing high demand in both healthcare and skilled trades.
The bipartisan Infrastructure Investment and Jobs Act has authorization of more than $1 trillion in unobligated funds. I propose funding a pilot jobs bill for less than one percent, or $1 Billion, to stimulate training and job growth in the skilled nursing and electrical fields. That means apprenticeship and expedited certification for electricians; and expanding the nursing program with tuition support, faculty grants, and clinical placements. The funding would be made available through competitive grants to existing workforce development centers, public high schools, and community colleges.
So the critical math is: How many jobs will this create in our district, and what is the lifetime (or 20 year) earning potential on this investment? The answer is a lot. A billion in funding returns about $1.4 Billion in income over 20 years. That’s a 40 percent return. And that’s not including any multiplier effect, which can be enormous for new wage earners as they spend their income on most expenses locally.
AN ELDER CARE FINANCE BILL
Background:
23 million Americans provide care for older adults. 21 million care for children. The trend will continue as the Baby Boomer population ages and life expectancy increases as a result of historically better healthcare. Since most Americans have not saved enough for retirement or long-term care, and current tax support for elder caregivers is outdated, this is a huge concern.
Proposed Reforms:
Restore the Full Child and Dependent Care Credit (CDCC):
Eliminate the 20% cap for AGI > $43,000 and restore full $3,000 credit per dependent. Because right now the cap means just $600!
Make the credit refundable.
Expand the Dependent Care Assistance Program (DCAP):
Raise the annual cap from $5,000 to $10,000.
Provide subsidies for lower-income workers and incentives for small employers.
Create a "Senior ABLE" Savings Program (SAFE Account):
Allow adults 65+ to save up to $100,000 without impacting Medicaid or SSI eligibility.
Include tax-free growth and state tax deductions, similar to a 529 plan.
The total estimated cost is $60–75 billion annually, the majority of which comes from fully restoring the CDCC. These programs reduce costly institutional care and encourage caregivers to stay in the workforce. I’d begin funding with the most likely sources to win bipartisan support, which could start with reducing Medicare Advantage overpayments by cutting excess reimbursements to private insurers. Independent policy agencies, MedPAC, the CBO, and the GAO have all made proposals where we could start.
The lesson from COVID: Modernize FDA Clinical Trials
There’s an old joke attributed to Harry Truman saying “Give me a one-handed economist! All my economists say 'on the one hand...' and then 'on the other'.” Well nothing reflects the idea better than the cost/benefit analysis that economists, scientists, policymakers, and physicians trade off around the FDA drug approval process. “Safe and effective” medicine is a sound guiding principle, but our nation’s experience with the Emergency Use Authorization (EUA) to approve the COVID vaccines should be a wake-up call. EUA saved many, many lives because the FDA never could have got life-saving vaccines out the door under the long, standard FDA approval process.
In addition, there are new empirical modeling techniques that health researchers now employ (increasingly by using artificial intelligence) that aren’t premised on the standard random double blind clinical trial.
So it’s definitely time that we empanel a new, FDA oversight committee comprised of physicians and medical scientists, who provide guidance on the appropriate use of alternative clinical trial protocols. The typical timeline for drug development is about ten years, with a median cost of more than $1Billion. Of course not every drug should be developed in exactly the same way or even the “new” way, but some certainly can and should allow for the possibility that promising therapies could reach suffering patients sooner.