This problem is that poverty is based on pre-tax income and cash transfers but not on taxes, tax credits, or non-cash transfers*. Many programs benefiting the less educated, families headed by single mothers, minorities, and the disabled such as SNAP, EITC, and WIC are not calculated in the current poverty index, unlike Social Security*. This distinction makes it politically difficult to increase funding for these forgotten programs because increasing funding would not have a measureable impact on poverty. Therefore, it is politically untenable.
America’s (Flawed) War on Poverty : Logistical Issues
March 21, 2014
*Council of Economic Advisors. The War on Poverty 50 Year Later: A Progress Report. Washington, DC: United States Government, 2014. 8,27 Print.1.