Files

Abstract

As households participating in the Food Stamp Program and other public assistance programs work more, the additional earnings are partially offset by a reduction in food stamp benefits and cash assistance from Temporary Assistance for Needy Families (TANF) or Supplemental Security Income (SSI). The rate at which food stamp benefits and TANF or SSI cash assistance are reduced with an increase in earnings is referred to as the program's effective benefit reduction rate (EBRR). This report derives FSP EBRRs for earnings with and without cross-program effects from adjustments to TANF or SSI cash assistance due to the additional earnings. The estimated FSP EBRRs are combined with TANF EBRRs and SSI EBRRs to estimate an effective tax rate on earnings in terms of these program benefits. With the authority for TANF programs devolved to States in 1996 Welfare Reform Law, FSP and TANF EBRRs as well as effective tax rates on earnings will vary by State. This report illustrates the treatment of earnings among these programs and the variation in treatment across states.

Details

PDF

Statistics

from
to
Export
Download Full History