ERIC Number: ED323071
Record Type: RIE
Publication Date: 1990-Feb
Reference Count: 0
Fulfilling Work's Promise: Policies To Increase Incomes of the Rural Working Poor.
Shapiro, Isaac; Greenstein, Robert
Poverty is an important antecedent factor affecting education. One of the most striking characteristics of rural poverty is the extent to which the rural poor work. About 65% of poor nonmetro families have at least one worker, compared to 54% of poor metro families. This report focuses on federal and state policy reforms that would assure poor rural workers a reasonable return for their efforts. The federal earned income tax credit (EITC) assists low-income families that have earnings and a child living at home, and the credit is "refundable" for families whose credit exceeds its income tax liability. Current proposals would expand the EITC for families with several children or young children. An outreach program is needed to inform low-income working families that they must file a federal tax return to receive the EITC payment. Raising the minimum wage to $5.02 in 1991 would restore its value lost to inflation during the 1980s and would benefit a majority of poor workers. Other strategies to aid the nonmetro working poor are: (1) making the federal dependent care tax credit refundable; (2) removing working poor families from state income tax rolls or establishing state EITCs; (3) restoring unemployment insurance coverage, which has dropped sharply in recent years; (4) extending Medicaid coverage to children in poor working families; and (5) instituting outreach programs to inform poor working families of their eligibility for food stamps. (SV)
Descriptors: Employed Parents, Family Income, Minimum Wage, Poverty, Poverty Programs, Public Policy, Rural Population, Tax Credits, Working Poor
Publications Service, Center on Budget and Policy Priorities, 236 Massachusetts Ave., NE, Suite 305, Washington, DC 20002.
Publication Type: Information Analyses; Opinion Papers
Education Level: N/A
Sponsor: Aspen Inst., Durham, NH. Rural Economic Policy Program.; Ford Foundation, New York, NY.
Authoring Institution: Center on Budget and Policy Priorities, Washington, DC.
Note: For related document, see ED 319 566.