Reducing Poverty in the United States

Research Report

Reducing Poverty in the United States

Results of a Microsimulation Analysis of the Community Advocates Public Policy Institute Policy Package
March 25, 2015

Abstract

A package of five policies—a transitional jobs (TJ) program, a $10.10 minimum wage, expanded earned income tax credits, a tax credit for senior citizens and people with disabilities, and expanded child care subsidies—could cut the national poverty rate by at least half. Using the TRIM3 microsimulation model and the Supplemental Poverty measure, the analysis shows the national poverty rate falling fall from 14.8 percent to either 7.4 percent or 6.3 percent, depending on the take-up rate assumed for the TJ program. Poverty is greatly reduced for all age groups and race/ethnicity groups.

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