What policies, tax credits, and government transfers are counted when evaluating the effect of government policy on the poverty rate? The results in Table 1.1 account for the role that the following government transfers and tax credits played in reducing the poverty rate in 2021 and 2022. CASH TRANSFERS: Income from the Supplemental Security Income program, Unemployment Insurance, and the Temporary Assistance to Needy Families (TANF) program. HOUSING SUBSIDIES: Government housing assistance and rent regulations (rent control and rent stabilization). NUTRITION PROGRAMS: Benefits from the Supplemental Nutrition Assistance Program (SNAP), the Special Supplemental Nutrition Assistance Program for Women, Infants, and Children (WIC), and free- and reduced-price school lunches. 10
TAX CREDITS: The Earned Income Tax Credit and the Child Tax Credit.
More than half of New Yorkers lived below 200% of the poverty threshold in 2022, which translates to $40,680 for single adults and $87,780 for a married couple with two children (in rental housing). The poverty line presents an estimate of how much a family needs to meet their basic needs. As such, it is a very low threshold — $43,890 for a family of four living in rental housing in New York City in 2022 (see Figure 1.3). However, it should be noted that having an annual income above this threshold is no guarantee that families will be able to meet their basic needs or will be shielded from experiences of material hardship. Those just above the poverty threshold — between 100% and 200% – are defined in the research literature as “low-income” 11 and, as shown in section 4 of this report, their experiences of material hardship are quite similar to those living below the poverty threshold. Approximately 1 in 3 (33%) New Yorkers fall into the category of “low-income,” and combined with those living below the poverty line, this amounts to more than half (56%) of the city’s population who are defined as either low-income or in poverty (see Figure 3.2). In our spotlight analysis in section 3, we further note the affordability challenges such New Yorkers experience and propose that 200% of the SPM poverty line can be used to better approximate what it takes to afford a more decent standard of living.
10 This does not include free or reduced priced breakfasts that are provided to children at school, free summer meals that are provided to children at school, or meals provided through the Child and Adult Care Food Program. 11 Rodems, “Hidden Hardship in the United States: Material Well-Being Above the Poverty Line.”
12 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
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