1. Tonight’s Discussion  Corrections to current poverty measure  Recognizing the impact of means-tested benefits  Estimating unreported income  Next steps: Comparing trends

2. Correcting current measure  Compared to current, excludes means-tested: TANF and SSI Pre-tax, pre-transfer (includes Social Security) to show market income roughly Major options   Household income (“cohabitors”)   Equivalence scale (adjustment for family size)   Inflation adjustor (CPI-U-RS to 1978, later CPI-U-X1 to 1967)   Return on home equity (government bond interest rate) Distributional/Political implications   State to state and children vs. elderly changes

3. Impact of means-tested benefits  EITC, TANF, SSI; food stamps; WIC; school meals; housing assistance; and energy assistance Post-tax, post-transfer: an “anti-poverty index” Means-tested benefits included: Excluded:   Medical benefits and child care Minus income and payroll taxes

4. Estimating Unreported Income  TANF  SSI  Food stamps Estimated unreported income included: Major forms of income not estimated:   Wages and salaries; self-employment income; Social Security; property income; illegal income; and gifts Future efforts

5. Comparing Trends “Anti-Poverty Index” vs. consumption trends, and vs. well-being trends Next two meetings Consolidation Broader audience