The frequently touted official federal poverty rate measures only pretax income. It doesn’t consider government benefits like food stamps nor the costs of taxes, housing, and childcare, all of which vary greatly across states and help determine how rich or poor people feel. The Census Bureau began calculating a Supplemental Poverty Rate in 2010 as a way to create a more nuanced picture of poverty in America. In 41 states, there was a significant difference between the 2010-2012 averages of the official and supplemental rates. Connecticut was one of 14 states where the supplemental rate was higher than the official rate; in 28 states the opposite was true. The wide disparity in housing costs between states is the main reason why families with the same income may feel poor in one place but not in another. Differences in states’ tax and public assistance policies also play a role.
Source: Stateline, 12/4/13, Poverty Rates
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