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Idea of the Day: Congress Needs to Extend Antipoverty Programs for Working Familes

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The U.S. Census Bureau on September 12  released new data on poverty in 2011, poverty being defined as a family of four with an annual income of less than $23,000. The data reveal that 46.2 million people (15 percent) lived in poverty last year, not statistically different from 2010.

While poverty increased under the traditional measure in the past several years and remained steady from 2010 to 2011, this metric does not take into account many of the important policy steps the Obama administration implemented to alleviate hardship and provide a pathway back to the middle class. The Recovery Act included the expansion of the earned income tax credit and the child tax credit for working families that kept 1.6 million people out of poverty in 2010.

The expansion of these two tax credits is set to expire at the end of the year. If Congress fails to act, millions of families could be pushed into poverty or experience deeper poverty. Overall, the entire earned income tax credit kept 5.7 million people above the poverty line in 2011.

Similarly, nutrition assistance played a big role in keeping people out of poverty and prevented a significant increase in the share of families struggling against hunger. Between 2007 and 2008, as our economy worsened in the run up to the Great Recession, there was a big jump in household food insecurity. Yet as poverty rose dramatically between 2008 and 2009, food insecurity, a key indicator of family hardship and deprivation, did not. It remained stable even as poverty steadily climbed over the subsequent years. This can be attributed in part to the expansion of the Supplemental Nutrition Assistance Program in the 2009 Recovery Act, which helped families afford food even as their incomes dropped. In fact, counting this nutrition aid as income would have lifted 3.9 million people above the poverty line in 2011.

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To speak with our experts on this topic, please contact:

Print: Katie Peters (economy, education, poverty, Half in Ten Education Fund)
202.741.6285 or kpeters@americanprogress.org

Print: Anne Shoup (foreign policy and national security, energy, LGBT issues, health care, gun-violence prevention)
202.481.7146 or ashoup@americanprogress.org

Print: Crystal Patterson (immigration)
202.478.6350 or cpatterson@americanprogress.org

Print: Madeline Meth (women's issues, Legal Progress, higher education)
202.741.6277 or mmeth@americanprogress.org

Spanish-language and ethnic media: Tanya Arditi
202.741.6258 or tarditi@americanprogress.org

TV: Lindsay Hamilton
202.483.2675 or lhamilton@americanprogress.org

Radio: Chelsea Kiene
202.478.5328 or ckiene@americanprogress.org

 

This is part of a regular column: Idea of the Day

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