How the Census Overcounts Poverty

More

Census poverty figures use a narrow measurement of income that leaves out many major anti-poverty programs that are run through the tax code and leave millions of Americans with more money after federal taxes. One out of seven Americans are officially in poverty, according to the new report, but one out of ten taxpayers receive tax payments in the form of refundable tax credits that are greater than what they owe in income and payroll taxes. That is, their tax bill makes them money.

An individual's income may put that person below the poverty line, according to the Census measure. But that measure ignores the on-the-ground effects of some of the most critical anti-poverty weapons, most notably the Earned Income Tax Credit, Medicaid, food stamps, and housing subsidies. Recently, for example, the EITC alone provided more than $40 billion annually to the working poor.

By excluding these benefits, the Census poverty figures fail to recognize that these programs lift many people out of actual poverty.

Read the full story on CNN.

Jump to comments
Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Get Today's Top Stories in Your Inbox (preview)

The Death of Film: After Hollywood Goes Digital, What Happens to Movies?

You'll never hear the whirring sound of a projector again.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

The Death of Film

You'll never hear the whirring sound of a projector again.

Video

How to Hunt With Poison Darts

A Borneo hunter explains one of his tribe's oldest customs: the art of the blowpipe

Video

A Delightful, Pixar-Inspired Cartoon

An action figure and his reluctant sidekick trek across a kitchen in search of treasure.

Video

I Am an Undocumented Immigrant

"I look like a typical young American."

Video

Why Did I Study Physics?

Using hand-drawn cartoons to explain an academic passion

Writers

Up
Down

More in Business

Just In