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Poverty influencing welfare fraud - Essay Example

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Poverty influencing welfare fraud

The designing of The Minimum Wage and Earned Income Tax Credit ensures that workers do not experience poverty. Unfortunately, the welfare reforms of 1996 restricted access to welfare cash (O”Connor, 2001). Accordingly, there is need to design and implement a new policy that ensures that those willing to work but cannot access steady employment find employment.
The current to pass through Congress was the amendment of Social Security Act title XI on 2008. The bill, also named the Measuring American Poverty Act of 2008. According to the bill, the decent living threshold is the annual income amount that would comfortably allow an individual to lead a comfortable and decent life. The main purpose of the act is to provide a measure for the level of poverty in order to access the level of effectiveness of anti-poverty policies and programs. The bill’s estimate for the fiscal years 2009 and 2010 was five hundred thousand dollars. This amount was allocated to the Bureau of the Census. In addition, the bill places the limit for the amount at not more than five million dollars for any given fiscal year.
The welfare system in the US has been facing problems beyond their control: that of fraud among the recipients of welfare beneficiaries (Barusch, 2009). Those against the welfare system argue that the government has made it easy for people to take advantage of the system. The welfare system had a well-planned effort of ensuring that no American citizens live in poverty despite their unemployment. The parties who suffer from welfare fraud are those citizens who are in real need of the welfare benefits as well as the tax paying citizens. There are several types of welfare frauds, which include unreported income, false aliases, ineligible children, and absent parent in the home. The unreported income fraud involves not reporting income thus benefiting from the welfare scheme. This is the most common form of welfare ...Show more
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Summary

Currently, the rate of poverty has been increasing significantly since the 1990s recession, passing the records rates of the 1970s after the end of world war during the Johnson and Kennedy era. Over time, poverty is a serious economic…
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