Welfare Reform: A Case Study

lived in poverty. These rates are especially high among women of color, older woman and single mothers trying to make ends meet. Black and Hispanic women are about twice as likely to be poor than white women. Roughly 1 in 5 elderly women are poor, as are 1 in 3 single mothers. The economic slumps hit women the hardest because they earn less than men, more likely to work part-time, more likely to leave their jobs because of caregiving responsibilities and domestic violence, less likely to have health insurance, and less likely to be eligible for unemployment insurance. There is also another viewpoint on welfare reform, Kay S. Hymowitz says, “The percentage of employed single mothers rose, in the years following reform” (Bily, 2009, p. 18). The …show more content…
Private charities can successfully serve the poor. Arnold Kling quotes, “Those organizations that work directly with poor people stand a better chance of learning how to meet their needs” (Bily, 2009, p 71). He believes charitable organizations are more flexible, accountable, and efficient. The poor would be better served by a new tax policy directing more money to private charities and less to the federal and state government. The role of charitable organizations is better than the government as a source of aid. It is easier for donors or volunteers to hold charitable organizations accountable than it is for taxpayers to hold government accountable. Failed government programs can go on forever, but an unsuccessful charity has a more difficult time obtaining adequate funding. In 2005, Sources of Revenue for Public Charities consisted of 50 percent from fees for services and goods from private sources, 20.4 percent from fees for services and goods from the government, 9 percent from government grants, 12.3 percent from private contributions, 2.9 percent from other income, 5.4 percent from investment income. People who contribute to a charitable donation can deduct this amount from their taxes. Some people believe that charities are limited to help people in certain geographical areas and the government can service everyone in need in all areas of the United States. The other issue is several people who contribute their …show more content…
Welfare Programs consist of 13 categories that represent entitlements to the American people. These benefits are only paid to low-income individuals and families. The U.S. Welfare Programs also include the Medicaid Program which provides health care to low-income citizens and some non-citizens. The 13 categories are as follows:
1. Negative Income Tax – This consists of two tax credit programs administered by the Internal Revenue Service (IRS) to distribute money to low-income Americans. The tax credits include a “refundable” portion which is paid to individuals and families that owe no income tax for the year. This portion of the tax credits act as “negative income tax”. The two programs are the Earned Income Tax Credit (EITC), and the Child Tax