Transfer Payment

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Transfer Payment

Money that a government gives to individuals, usually through a social welfare program. For example, elderly people in the United States who have paid FICA taxes for a certain number of years receive a Social Security check from the government every month. This is a transfer payment. Another type of transfer payment is money given to a state or province with the proviso that it will fund the state or province's social welfare programs. For example, under the Personal Responsibility and Work Opportunity Reconciliation Act in the United States, each state receives a certain amount of money from the federal government to fund welfare and similar programs for the poor.
References in periodicals archive ?
18) Specifically, she raises her utility through greater leisure by replacing labor income with labor-free transfer income.
5 to 25 acres, the self employment is the sole contributor in no-farm income inequality in Cotton/Wheat Sindh as compared to Barani Punjab where all sources except transfer income contributes in non-farm income inequality.
Governments operate a variety of programs that tend to transfer income from the rich to the poor.
These results prompted them to conclude that "the principal reason for higher total income among the disadvantaged groups in Canada is higher transfer income.
Data come from the 1997 and 1999 National Surveys of America's Families (NSAF) and the Urban Institute's Transfer Income Model, which corrects the NSAF's underreporting of government benefits, adds the value of food stamps and earned income tax credit imputes federal payroll and income taxes, and estimates annual out-of-pocket child care expenses.
84 million yen in terms of long-term land transfer income.
The income sources have been divided into two general categories: earned income (traditional and nontraditional) and transfer income (public and private) (Table 1).
5 million when we took over and the only way we could repay the council loan was from transfer income.
Given this rate, expected after-tax wage and transfer income over the next five years makes up about three-fourths of human capital.
Thus, in this society, optimally the old will transfer income to the young.
They report several possible answers: to rectify market failure stemming from the inability of the private market to deal efficiently with problems of moral hazard and adverse selection; to enhance equity by transferring income from well-off taxpayers to distressed and less well-off farmers; or, finally to transfer income to farmers as a way of garnering their political support.