President Obama said in his State of the Union last week, “But Americans overwhelmingly agree that no one who works full time should ever have to raise a family in poverty.”
Thank you, Mr. President. But even without you, as already enacted in current law, for anyone who works full time in America, the minimum wage, plus the Earned Income Tax Credit, plus the Child Tax Credit, equals or exceeds the poverty level for every possible family combination, including single mothers with children.
Full time work at the current federal minimum wage of $7.25 equals $15,080 a year. That exceed the federal poverty level for 2014 for one single person living alone, at $11,670. In addition, that single person still qualifies for an earned income tax credit of $496. Because that is “refundable,” the individual still gets that in cash even if he or she is not liable for any federal income taxes.
With one child, the single person gets an additional $1,000. Plus the Earned Income Tax Credit increases to $3,305, for a grand total of $19,385. The poverty level for 2014 for a single mother with a child is $15,730.