For this study, GOBankingRates analyzed all 50 states and examined a variety of factors that contribute to or suggest a more difficult life for people with lower incomes, such as the monthly mortgage, the overall cost of living, each state's effective income tax rate and per capita state spending on public welfare, and used them to generate an overall score to determine which states are most harmful to people with lower incomes. Simply put, the lower the maximum tax bracket, the less favorable it will be for low-income individuals and families. Low-income families and individuals who reside in Georgia struggle to make ends meet and receive little assistance or protection. The result of all this is that, if the opportunity presents itself, low-income citizens seeking better opportunities can make the informed decision to move to a state where salaries, prices and policies make it easier for them to survive and, potentially, to get out of poverty.
With its high cost of living, and especially high housing prices, it might surprise some that New York is the third most hospitable state for low-income residents. TANF, the reincarnation of traditional cash welfare from the Clinton era, provides cash assistance to families with very low-income children. In addition, the Nevada Low Income Housing Trust Fund provides rental assistance to residents who earn less than 60 percent of the area's average income, and this assistance is available for up to four years per household. RewardExpert analyzed 22 key data metrics to determine which states are the most and least hospitable to low-income individuals and families.
Beyond operating costs, most of the remaining 3 percent of public welfare spending went to direct cash assistance to low-income beneficiaries for programs such as TANF, Supplemental Security Income and the Federal Energy Assistance Program for Low-Income Homes. Kentucky is an expanding Medicaid state, so low-income individuals and families are eligible for Medicaid if their income is below 138% of the federal poverty line. A score of 100 represents the best health care for low-income people at the most affordable cost. Kentucky, which ranks tenth, is known for having a large proportion of low-income residents, but it might come as a surprise that it's a comparatively good state to be at a socioeconomic disadvantage.
More than 78.5 million are currently enrolled in publicly funded health insurance for low-income people.
