Income-Tested Transfer Programs

List of Figures and Tables

Contributors

Foreword


1 Introduction

Terms and Concepts

Historical Importance of the Income-Testing Issue

Our Current Income Support System

The Issues and the Papers


2 Stigma in Income-Tested Programs

Stigmatization Processes

The Stigma of Poverty

The Intensified Stigma of Charity

Responses to Stigmatization

Stigma in Other Income-Tested Programs

Conclusion: Income Testing as an Intensifier of the Poverty Stigma

Discussion

Discussion

Discussion: Modeling the Decision to Apply for Welfare


3 Income Testing and Social Cohesion

What Is Social Cohesion?

Argument 1: Universal Programs Are Less Likely to Reduce Social Cohesion Than Are Income-Tested Programs

Argument 2: Universal Programs Are No Less Likely, Perhaps Even More Likely, to Reduce Social Cohesion Than Income-Tested Programs

Conclusion

Discussion


4 Income Testing and Politics: A Theoretical Model

A Political Model

The Politics of Income Testing

Conclusion

Discussion

Discussion

Discussion


5 Social Policy Development in Europe and America: A Longer View on Selectivity and Income Testing

When and Why Social Insurance Benefits and Educational Opportunities Became More Widely Extended

Trends Toward Universality of Coverage in Social Insurance and Education

Universality and Selectivity in Contemporary American Policies

Epilogue

Discussion

Discussion: Ideology, Education, and Social Security


6 A Simulation Analysis of the Economic Efficiency and Distributional Effects of Alternative Program Structures: The Negative Income Tax Versus the Credit Income Tax

Introduction and Major Findings

Methodology

Results from the Simulations

Conclusion

Discussion

Discussion


7 Taxpayer Behavior and the Design of a Credit Income Tax

Introduction

Antecedents of the CIT

Definition of the Tax-Transfer Unit

Accounting Period and Procedures

Definition of Taxable Income

Administrative Arrangements

Surtax Considerations

Categorization for Benefits

Costs of Administration and Compliance

The Role of the CIT in Public Finance

Political Economy and CIT Implementation

Appendix 7.A: Elements of Taxable Income for CIT

Appendix 7.B: CIT Administrative Design and Marginal Tax Rates

Discussion

Discussion


8 Income Testing and Social Welfare: An Optimal Tax-Transfer Model

The Model

Calculations

Results

Summary, Qualifications, and Policy Implications

Appendix: Nonfully Integrated Tax-Transfer Systems

Discussion

Discussion


9 Income Testing of In-Kind Transfers

Introduction

The Case for Income Testing

The Case for Universal Services

Conclusion: Income Testing as a Scarce Resource

Discussion

Discussion


10 Financing Health Care

Current Arrangements for Financing American Health Care and Their Problems

Major Goals and Other Considerations of NHI

The Universal and Income-Tested Concepts as Applied to NHI

Alternative Approaches to NHI

Assessment of NHI Alternatives

Summary and Conclusions

Discussion


11 Single-Parent Households Under Alternative Transfer and Tax Systems

Why Single-Parent Households Present a Special Problem for Society

The History of Public Policy Toward Support of Children in One-Parent Households

The Distributional Consequences of the Status Quo

The Consequences of Credit and Negative Income Tax Schemes, with Categorical Modifications for One-Parent Households

The Remaining Dilemma and a Possible Solution

Conclusion

Discussion

Discussion


12 Income Testing in Income Support Programs for the Aged

Should Social Adequacy Be a Concern of OASI?

Models of the Three Systems

The Problem of What to Hold Constant

Data and Methodology

Major Results

Some Qualifications

Isolating the Effects of the Welfare Features of OASI

Conclusion

Appendix: Basic Provisions of the Supplemental Security Income Program

Discussion

Discussion


13 Conclusion

The Major Issues Reviewed

Income-Testing Particular Programs

Implications for Policy

References

Author Index

Subject Index