Bending the Employment Income and Cost Curves for People with Disabilities

This issue brief proposes a two-pronged approach for increasing the employment rate for people with disabilities, reducing their reliance on federal support, and increasing their household incomes, while preserving benefits for those who are unable to work. This approach includes introducing an experience-rating system for the disability portion of the pay­roll tax and expanding the Earned Income Tax Credit for workers in all low-income households, funded by higher taxes on high-income house­holds.