2Center or American Progress | Making the Right Choice or Fiscal Stability
Te CAP budge plan also employs a sraegy o increase wages among he lowesincome earners and reduce povery. Te plan lowers he ax burden on low-income working amilies in 2017 so hey keep more o heir earnings. In addiion, i helps low-income amilies reduce child-care expenses, he cos o ood, school meal coss, andhousing coss. Moreover, addiional ederal unds ensure ha he incomes o blind anddisabled households are above he povery line. (see able 2)
Investing in an opportunity society
Minimum wage and targeted investments can signiicantly reduce poverty by providinga hand up into the middle class
Federal program/policy to reduce povertyNumber of poor households or Individualsreceiving additional assistance
Minimum wage increase28 million individuals afected, with an estimated 2.2million projected to rise out o povertyExpanded earned income tax credit- maintains AmericanRecovery and Reinvestment Act expansion500,000 householdsChild and dependent tax credit 5.2 million householdsHigh-quality afordable child care 600,000 childrenSchool breakast/lunch10.8 million childrenSupplemental Nutrition Assistance Program 8.1 million individualsSupplemental Security Insurance or Blind, DisabledAdults and Youth6 million householdsHousing Subsidies 1.4 million households
Sources or data or impact o investments: Bureau o Labor Statistics, Characteristics o Minimum Wage Workers: 2011; Economic Policy Institute, A Rising Tide or Minimum Wage Increase, 2012; Urban Institute Technical Report, Estimating the Anti-Poverty Eects o Changes in Taxes and Benefts, April2007; Center or Budget and Policy Priorities, Studies Show Earned Income Tax Credit Encourages Work and Success in School and Reduces Poverty, June2012;Tax Policy Center, Taxation and the Family: What is the Child Tax Credit? and Reduce Child Tax Credit Reundability Threshold to $0, Distribution o Federal Tax Change by Cash Income Level, 2010; Department o Health and Human Services, Administration or Children and Families, Characteristicso Families Served by Child Care and Development Fund (CCDF),Based on Preliminary FY 2010 Data; U.S. Department o Agriculture, Food and NutritionServices, School Breakast and Lunch Participation Fact Sheets, 2011; U.S. Department o Education, Department o Agriculture, Characteristics o Supplemental Nutrition Assistance Program Households: Fiscal Year 2010; Koenig, Melissa and Kalman Rup. “SSI Recipients in Households and Families withMultiple Recipients: Prevalence and Poverty Outcomes.”Social Security Bulletin. 65 (2) (2003-2004); Decade o Neglect Has Weakened Federal Low-IncomeHousing Programs, New Resources Required to Meet Growing Needs by Douglas Rice and Barbara Sard. February, 2009 .
Te sum oal impac o hese invesmens beginning in 2017 are projeced o relaively quickly reduce he ranks o he poor by a leas 8 million households due o he mini-mum wage increase combined wih he number o households impaced by he increasein he Supplemenal Securiy Income increase and he expansion in ederal subsidizedhousing. Many more amilies are likely o be lied ou o povery by hese changes, as well. So le’s look a he deails.