Many people do not feel comfortable describing themselves as poor or low-income. Yet it is important to understand that many Americans are "low-income" according to federal guidelines, living close to or within poverty levels. Assistance is available to such families and individuals based on their low-income status, providing everything from free food to health care for those who are eligible.
Definition
Two definitions exist within the U.S. federal government to define low-income or poverty levels. The U.S. Department of Health and Human Services consideres a family of three with two working parents and a minor child as low-income at $18,310, as of 2010. The U.S. Census Bureau calculates the poverty threshold, which lists the same family is low-income at $14,787 per year.
Calculation
The poverty guideline is updated annually by the Department of Health and Human Services to express who may be eligible for assistance by income. Every year, the guideline is calculated and updated by weighting the U.S. Census Bureau's poverty threshold against the Consumer Price Indexes (CPI-U) and taking into account family size. The CPI-U measures the regular inflation of the cost of living by tracking the price of common use goods. This new guideline total is rounded to the nearest $10 and posted in the first two months of the calendar year.
Purpose
Defining "low-income" becomes important when the government designs and implements programs like Medicare, child protection services, Welfare and other social assistance programs. By defining the parameters, the government can allot the appropriate amount of funds to create and run such assistance programs. Understanding these definitions and their uses helps you better seek assistance for which you could qualify.
Considerations
The poverty guidelines, or the annual income the government defines as low-income, is modified each year. Every 10 years the federal government conducts a census of the American people to better understand the demographics concerning ethic background, income levels, size of household, etc. This information is processed and used by various agencies to plan, implement and improve social assistance programs since significant changes in the population will need different forms and version of assistance from such programs.
Tags: assistance programs, Census Bureau, Department Health, Department Health Human, federal government, Health Human
