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Social Welfare Policy: Vocabulary Terms

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Social Welfare Policy Vocabulary Terms – Regressive Tax – A tax in which the burden falls relatively more heavily on low-income groups than on wealthy taxpayers. The Opposite of a progressive tax, in which tax rates increase as income increases. Earned Income Tax Credit (EITC) – A refundable federal income tax credit for low – to moderate – income working individuals and families, even if they did not earn enough money to be required to file a tax return. Transfer Payments – Benefits given by the government directly to individuals – either cash transfers, such as social security payments, or in-kind transfers, such as food stamps and low-interest college loans. Temporary Assistance for Needy Families (TANF) – Replacing aid to Families

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