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.
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References in periodicals archive ?
Not only were the early 1980s and late 2000s recessions the most severe with respect to unemployment (BLS 2012)--10.8% in December 1982 and 9.5% in June 2009--the growth rate of pre-tax and transfer income instability was the largest as well--ranging from 9% (2007-2009) to 15% (2007-2012) during the Great Recession and 8% from 1981 to 1983.
As lower oil prices would transfer income to oil consumers from oil producers, UBS revised upward the current account balance projections for India, Thailand, Philippines and Singapore.
In effect then, the policy permits her to swap OF + GE of income--fruits of her own labor--for OF units of "labor-free" transfer income and E'G' additional units of leisure.
It is clear from above discussion that for households having land between in 12.5 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.
"The denial of an ongoing source of transfer income has helped to polarise football finances further," the League says in a written submission to the inquiry.
The spending review paves the way for child benefit to be removed from families with a higher-rate taxpayer, triggering speculation that business owners could transfer income to their spouses to avoid higher tax brackets.
The cyclicality of income for the bottom quintile falls from 0.76 to 0.41 as a result of transfer income alone, and that of the second quintile falls from 0.90 to 0.61.
In the working paper by University of British Columbia economists Giovanni Gallipoli and Laura Turner, researchers examined data from the Canadian Survey of Labour and Income Dynamics (SLID) and found that in marriages, "main-earners" (typically husbands) tend to transfer income and compensate "second-earners" (typically wives).
If government tax and transfer policies were motivated solely by the desire to transfer income from the rich to the poor, there is little doubt that this could be accomplished.
Governments operate a variety of programs that tend to transfer income from the rich to the poor.
If market, cultural, or economic differences could explain the divergence in poverty trends, then these rates must also diverge based on pre-tax and transfer income data.