October 1, 2014 at 2:49 pm
Today’s start of fiscal year 2015 brings small adjustments to SNAP (formerly food stamps) eligibility and benefits. We’ve updated our quick guide that provides an overview of SNAP eligibility and benefit calculation rules.
To be eligible for SNAP, a household must meet three tests related to gross monthly income, net income, and assets. Our guide defines “income” and “assets” and clarifies who isn’t eligible regardless of income or assets — such as individuals who are on strike, all undocumented immigrants, and certain legal immigrants.… Read more
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October 1, 2014 at 1:14 pm
A central piece of health reform authorizes the federal government to provide tax credits to help low- and moderate-income people buy coverage in the new health insurance marketplaces. A federal district court judge in Oklahoma ruled yesterday that the law only authorizes the tax credits in states that have set up their own exchanges, not in states with a federally operated exchange. (Other federal courts have split on the issue, which may eventually reach the Supreme Court.) But this argument rests on a distorted reading of the law. … Read more
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September 30, 2014 at 12:30 pm
Millions of low-income people qualify for both Medicaid and SNAP (formerly food stamps), but the federal government doesn’t regularly assess how many of them actually receive both. That’s a significant omission: Medicaid and SNAP address the most basic needs of our poorest citizens, and health care and nutrition assistance likely produce more powerful results when provided together. A new Urban Institute paper examining joint participation among eligible children and non-elderly adults in five states — something the federal government could do for all states every year — suggests there is substantial room for improvement.… Read more
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September 29, 2014 at 2:18 pm
“We need to hear facts and serious policy proposals, not political slogans” like “upside-down tax incentives,” the Senate Finance Committee’s top Republican, Orrin Hatch, said at a recent committee hearing on retirement savings. But tax incentives for retirement plans like 401(k)s and individual retirement accounts (IRAs)are indeed “upside down,” providing the largest subsidies to high-income taxpayers while benefiting low-income households the least (see chart). As we’ve written, tax incentives for retirement savings are expensive, inefficient, and inequitable, making them ripe for reform.… Read more
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September 29, 2014 at 12:01 pm
Virginia Governor Terry McAuliffe has good things to say about the Community Eligibility Provision (CEP), which allows high-poverty schools to provide breakfast and lunch to all students at no charge. Speaking recently about how to improve education, he said in part:
It will surprise no one here to learn that studies show poverty is the number one predictor that a student will face educational challenges. . . . Nor will it surprise anyone that the number of students here in Petersburg impacted by the local economy is high.
… Read more
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September 26, 2014 at 3:22 pm
This week on Off the Charts, we focused on the new Census data on poverty, inequality, and health coverage; the federal budget and taxes; state budgets and taxes; and housing.
- On the new Census data, we listed five key takeaways from the data. Arloc Sherman explained why the data strengthen the case for doing more to help low-income childless workers and pointed out that the decline in the official poverty rate follows a decade and a half of mostly rising or stagnant poverty rates.
… Read more
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September 26, 2014 at 1:55 pm
So-called “fair-value accounting” is misguided because it would make federal loan and loan guarantee programs look more expensive than they really are, as my colleague Richard Kogan and I have explained. Jason Delisle and Jason Richwine, writing in the latest issue of National Affairs, correctly note that the logic of our argument is inconsistent with a 2005 CBPP analysis of proposals to invest part of the Social Security trust funds in stocks instead of Treasury bonds. We concur. We have re-analyzed our assessment of investing a portion of the Social Security trust fund in equities and now come to a different conclusion than we did in 2005.… Read more
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September 25, 2014 at 12:32 pm
Here are five key findings from our analyses (here and here) and blog posts on the new figures from the Census Bureau and Centers for Disease Control and Prevention (CDC).
- While poverty and median income improved last year for families with children,poverty rates reached record highs for childless families and individuals. The poverty rate for individuals not living in families (people living alone or only with non-relatives) rose to 23.3 percent in 2013, the highest in over 30 years.
… Read more
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September 24, 2014 at 3:45 pm
Kansas these days offers a host of lessons of what not to do when managing state finances. We’ve already noted one: don’t enact unaffordable tax cuts. Kansas’ massive income tax cuts have left it on the verge of a major fiscal emergency, as a Washington Post editorial pointed out. Here’s another: don’t go without a formal “rainy day” reserve fund. Kansas is one of only four states without one, which helps explain its current troubles.
Kansas’ tax cuts caused a revenue decline so severe that the state, in order to pay for this year’s spending, drew on fund balances intended to provide a temporary financial cushion during economic downturns or other unexpected events. … Read more
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September 24, 2014 at 10:54 am
A new bill from Rep. Randy Neugebauer (R-TX), chair of the House Financial Services Committee’s Housing and Insurance Subcommittee, would raise rents on some of the nation’s poorest families. The bill apparently intends the rent increases to balance the possible cost of allowing the Department of Housing and Urban Development (HUD) to lower rents for families with somewhat higher incomes. The rent increases could cause hardship — and even homelessness — for vulnerable families.
Today, families that receive rental assistance through Housing Choice Vouchers, public housing, and other HUD programs generally pay rent equal to 30 percent of their income, the maximum share that’s considered affordable. … Read more
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September 23, 2014 at 5:16 pm
In an important first step to stem “inversions,” in which a larger U.S. multinational merges with a smaller foreign firm to avoid U.S. taxes, the Treasury announced new rules that not only effectively remove one way that taxpayers subsidize such deals, but also tighten existing limits on them. The President should (and likely will) look for further steps the Administration can take, and Congress should do its part to protect the corporate tax base from this brazen tax avoidance.
Here’s some background. … Read more
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September 23, 2014 at 5:10 pm
Poverty and incomes worsened last year for childless adults while improving for children and their families, the new Census data show. The new figures highlight the need to do more to help low-income workers not raising minor children, as both President Obama and House Budget Committee Chairman Paul Ryan, among others, have proposed.
- The poverty rate for individuals not living in families (primarily people living alone and unrelated people who share a household) rose to 23.3 percent in 2013, the highest in over 30 years.
… Read more
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