The "poverty tax" and America's low income households

Karger, Howard Jacob (2007) The "poverty tax" and America's low income households. Families in Society, 88 3: 413-417. doi:10.1606/1044-3894.3650

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Author Karger, Howard Jacob
Title The "poverty tax" and America's low income households
Journal name Families in Society   Check publisher's open access policy
ISSN 1044-3894
Publication date 2007-07
Sub-type Article (original research)
DOI 10.1606/1044-3894.3650
Open Access Status File (Publisher version)
Volume 88
Issue 3
Start page 413
End page 417
Total pages 5
Place of publication Milwaukee, WI, United States
Publisher Alliance for Children and Families
Language eng
Formatted abstract
Although low-income U.S. households account for more than $650 billion a year in buying power, they still pay more for basic goods and services than high-income households. A 2006 Brookings Institution study found that if essential goods and services were reduced for the working poor by just 1%, it would put an additional $6.5 billion—more than one-third of the benefit these families earn from the Earned Income Tax Credit—into their pockets.

Although the additional costs of being poor have been called a “ghetto tax” this definition is problematic because not all of the poor live in ghettos. In fact, some—especially the functionally poor middle class (those families with moderate incomes but high debt and little or no assets)—live in middle-income neighborhoods. A more inclusive term is a "poverty tax," or a hidden tax paid by the poor because they are poor.
©2007 Alliance for Children and Families
Keyword Poverty
Low income groups
Family income
Earned income
Tax credits
Economic policy
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
School of Nursing, Midwifery and Social Work Publications
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Citation counts: TR Web of Science Citation Count  Cited 2 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 4 times in Scopus Article | Citations
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Created: Mon, 30 Nov 2009, 18:46:30 EST by Professor Howard Karger on behalf of Faculty of Social & Behavioural Sciences