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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Day: January 11, 2012

Jobless Benefits – South Carolina

  • SC Senate panel approves unemployment bills, By Seanna Adcox (AP), January 11, 2012, Charlotte Observer: “A Senate panel advanced bills Tuesday that would require people laid off in South Carolina to pass a drug test to receive unemployment benefits, then volunteer 16 hours weekly with a charity or public agency to keep receiving a check. Though the panel heard testimony that both proposals would likely conflict with federal law, its chairman, Sen. Kevin Bryant, said afterward that doesn’t matter…”
  • Jobless may be forced to take drug tests and volunteer, By Tim Flach, January 11, 2012, The State: “A legislative tug-of-war started Tuesday over proposals to require laid-off workers to take a drug test initially and sign up for community service later to receive unemployment payments.  Both proposals won approval from a Senate panel despite warnings the steps probably would be challenged by federal labor officials as too harsh on many of South Carolina’s nearly 214,000 jobless. The drug-test requirement breezed to initial acceptance amid complaints it is punitive. Making a test a condition for benefits doesn’t send ‘the right message,’ said Sue Berkowitz, who runs a Midlands legal service for the poor…”

Earned Income Tax Credit – Illinois

Quinn signs earned-income tax credit, By Sophia Tareen (AP), January 10, 2012, Springfield State Journal-Register: “Legislation aimed at helping poor Illinois families keep more of what they earn was signed into law Tuesday, a month after Gov. Pat Quinn signed companion legislation granting tax breaks and incentives aimed at keeping two big employers in the state. The new law, which is effective for the 2012 tax year, expands the state’s earned-income tax credit. It’s now 5 percent of the federal credit and will climb to 7.5 percent next year and 10 percent the year after. State officials said it would eventually translate to an average of about $100 a year per family. Currently about 900,000 families meet income guidelines in Illinois, but some advocates estimated 1 million will qualify this year…”

Economic Mobility in the US

Middle class dropouts, By Tami Luhby, January 11, 2012, CNNMoney.com: “Nearly one third of Americans who were raised in the middle class dropped down the economic ladder as adults — and that’s before the Great Recession hit. ‘Being raised in the middle class is not a guarantee that you’ll have that same status as an adult,’ said Erin Currier, project manager at Pew’s Economic Mobility Project. ‘With all the economic turmoil in the past four years, there’s good reason to think that downward mobility is more severe.’ Pew looked at children born in the early- to mid-1960s and assessed their economic status roughly 40 years later. Being middle class in the parents’ generation meant a household income of roughly $33,000 to $64,000 in 1979. But their children had to earn between $54,000 and $111,000 to maintain their relative standing in society in the mid-2000s…”