States Need to Focus to Tackle Poverty

"the nationwide poverty rate has stalled around 11 or 12 percent for years — and that’s for a family of four with income under the federally-set line, now $21,200 a year. (Try living on that — a reasonable minimum for food, shelter and clothing needs would be closer to $30,000)."

"Poverty places a huge drag on the economic output and productivity of states and communities. Poor health, substandard housing, mental stress, employment crises, teenage pregnancy, low literacy and added likelihood of arrest and imprisonment all appear to be part of a misery package that hits poor populations far more heavily than the rest of us."

"So what’s to be done? What should the 15 state commissions (and how about the other 35) recommend?"

"First and most obvious, get more money into the pockets of the poor. Even with full-time minimum wage employment, many of our poor subsist “on the edge.” Often, rent costs more than half their income. A single illness, an unexpected car repair or rent increase can throw them into full-scale crisis."

"Tax relief for the poor is crucial. Nearly half the 42 states that levy income taxes have thresholds set below the federal poverty level. Then sales taxes take much bigger and more painful bites out of poor peoples’ budgets. Alabama even has a sales tax on food. Any significant taxes hitting the poor are a bad idea — arguably counterproductive for states’ long-term budgets."