Ch 18 Flashcards
Entitlement program
government benefit to which certain qualified individuals are entitled by law, regardless of need.
Means-tested program
government program available only to individuals below a poverty line.
Income distribution
“shares” of the national income earned by various groups.
Income
amount of funds collected between any two points in time.
Wealth
value of assets owned.
Poverty line
method used to count the number of poor people; considers what a family must spend for an “austere” standard of living.
Feminization of poverty
increasing concentration of poverty among women, especially unmarried women and then children.
Progressive tax
tax by which the government takes a greater share of the income of the rich than of the poor.
Proportional tax
tax by which the government takes the same share of income from everyone, rich and poor alike.
Regressive tax
tax by which the burden falls relatively upon low-income groups than upon wealthy taxpayers; opposite of progressive tax.
Earned Income Tax Credit (EITC)
“negative income tax” that provides income to very poor individuals in lieu of charging them federal income taxes.
Transfer payment
benefit given by the government directly to individuals; may be either cash transfers (i.e. Social Security payments) or in-kind transfers (i.e. food stamps).
Social Security Act of 1935
creator of both the Social Security Program and a national assistance program for poor children, usually called AFDC.
Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA)
official name of the welfare reform law of 1996.
Temporary Assistance for Needy Families (TANF)
new name of the organization that brings forth public assistance to needy families; former possessor of the name “Aid to Families With Dependent Children.”
