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(Tax History) All governments levy taxes to meet their ____. Because taxation appropriates income for ____ and puts it to ___ use.
- legislated obligations
- private parties (individuals and corporations)
(Tax History) Since the establishment of the republic many have objected to goverment taxation and challenged authorities to appropriate private property. These challenges were usually sorted out in courts but sometimes led to violent confrontations such as the ____ that ____ shortly after its creation
- Whiskey Rebellion
- divided the nation
(Tax History) The radical Right recognizes that tax money allows the government ____
(Tax History) Ever since the creation of the welfare state with teh passage of the ____; social program expenditures have ___; and have been paid for by ____.
- Social Security Act of 1935
- increasing taxes
(Tax History) Harry Hopkins synopsis was tax, tax; spend, spend; elect, elect. This produced strong electoral support for liberal social programs by _____
taxing the wealthy at higher rates, the revenues then being diverted to social benefits for middle working class through social programs, and those benefiting expressed gratitude by voting Democratic
(Tax History) The Reagan presidency was revolutionary in profound changes in tax policy. How? Who restored a measure of fairness in tax policy?
- He had a dislike for social programs and wanted to reduce them and their tax burden and increased economic inequality.
(Tax History) The presidency of ____ viewed tax cuts as the center piece of its domestic agenda. It was said that he wanted to _____.
- George W. Bush
- reduce the size of the government and its role
(Tax History) As a creation of the legislative process, tax policy is most visible in _____.
the passage of major bills
(Tax History) Periodically, attempts to reform tax policy emerge, such as the _____, which ______.
- 1986 federal tax reform
- simplified the tax code and eliminated -temporarily- provisions for special interests
(Tax History) An overview of tax policy suggest that it is ___ and at the same time ___. Historically three tax policies have been central to U.S. social policy ___, ___, and ____.
- the income tax
- withholding tax
- the earned income tax credit
(Tax History) The federal income tax was instituted after approval of the ____. It was a progressive tax which meant _____.
- 16th Amendment to the Constitution in 1914
- the wealthy were taxed at a higher rate
(Tax History) The Social Security withholding tax or the ____, was established in ____. It was deducted through pay roll and capped at ____ for the first ____ in wages and was ____.
- payroll tax
- paid equally between employers and workers
(Tax History) The wage cap was establihsed at the outset, under the presumption that Social Security was a ____ for workers who would not have recourse to retirement provisions available to the wealthy. The withholding tax is a regressive tax in that ____.
- public pension plan
- lower income workers pay the same rate as higher wage employees
(Tax History) the earned income tax credit was enacted in ___ after the failure of a _____ advanced by ____. A refundable tax credit, the EITC instructs the IRS to _____, especially _____.
- "negative income tax" plan
- the Nixon administration
- send a check to low wage workers
- those with children, who have earned income below a certain level
The relatively low tax rate of the United States largely accounts for the nation's skewed ____. A tenet of the welfare state has been the progressive taxation of income and its redistribution to the poor through ___.
- income distribution
- social programs
By definition, a welfare state with a low tax rate is unable to _____ to the level differences between the rich and poor; thus, the question of income distribution has become ____.
- generate revenues sufficient
- integral to the discussion of tax policy
Income distribution ____; most recently wealthier families have ____.
- changes over time
- benefited significantly
Within social welfare, more traditional benefits have consisted of social insurance such as Social Security, cash public assistance, TANF, in-kind benefits, and EITC (tax rebates). These different strategies vary in terms of their efficiency in poverty reduction over time. For elders ____ makes the biggest dent in poverty. ____ are more important for children and families.
- social insurance- compulsory contributions to social programs like Social Security and Medicare
- means-tested in-kind benefits and tax policies
Social insuranc is the ____ of the U.S. social welfare policy. It is a system whereby people are compelled -through ____- to insure themselves against the possibility of the own ____, such as might result from the economic vicissitudes of ____, the ____, _____, or ____.
- payroll or other taxes
- retirement, loss of a job, death of the family breadwinner, physical disability
Social insurance sets aside ____ that is ____ and earmarked for use in the event of workers' retirement, death, disability, or unemployment.
- a sum of money
- held in trust by the government
The major goal of social insurance is to ____ by ____. It is a ____ system whereby the ____ pay for those who have retired, are ill, or who have lost their jobs.
- help maintain income
- replacing a portion of lost earning
- workers and employers of today
Medicare was established in ____ and is considered to be the ____. It is a ____ and was incorporated ____. It later
years the act was amended to allow workers to retire as early as age 62 provided they agreed to ____. In 1977 an automatic ____ was attached to benefit payments.
- Federal Health Insurance for the Aged
- prepaid health insurance plan
- into the law
- accept only 80% of their benefits
- cost of living index
There are tow Medicare trust funds (1) ____ pays for the services covered ____ (Part __) provisions of Medicare. (2) the _____ pays for the services covered _____ (Part __) provisions of Medicare.
- The federal Hospital Insurance (HI)
- under the hospital insurance
- federal Supplementary Medical Insurance (SMI)
- under the medical insurance
OASDI is a combination of ____ and ____. It is commonly referred to as ____. It is the ____ in the nation and covers approximately __ out of __ workers.
- Old Age and Survivors Insurance
- Disability Insurance
- Social Security
- largest social program
- 9 out of 10
OASDI is a federal program administered by the ____, which in 1994 became and ____ headed by a commissioner and a board appointed by the ____ for a ___ year term. ___ is a great example of a program that has worked.
- Social Security Administration
- independent agency
- U.S. president
- Social Security
Benefits under OASDI are ____ based; that is they are based on the ____ rather than _____. If benefits exceeds the revenues, the difference is made up from the ____.
- the beneficiaries' earnings
- the amount of the revenue in the trust fund
- reserves in the trust funds
Unemployment Insurance (UI) is a part of the _____. It is a federal/state program whose objectives are (1) ____ and (2)____.
- Social Security Act of 1935
- to provide temporary and partial wage replacement to involuntarily and recently unemployed workers
- to help stabilize the economy during recessions
The current guidelines of the UI program require ____ to contribute to a trust fund that is activated if ____.
- an employee loses their job
The problems with unemployment are 1-___, 2-___, 3-___, 4-___, 5-___, 6-___, 7-___, 8-___, and 9-___.
part-time workers, temporary workers, low-wage workers, limited coverage, benefit decline, longer spells of unemployment, women and unemployment, meeting its finacial obligations, and tightened eligibility requirements
Workers' Compensation (WC) programs began in 1911 in ___ and ___. By 1948 ____. WC programs provided ___, ___, ___, and ____ to persons who are victims of industrial accidents or occupational illness.
- New Jersey
- every state operated on some form of WC program
- cash, medical assistance, rehabilitation services, and disability and death benefits
The basic principle of WC programs is that ___.
employers should assume the costs of occupational disabilities without regard to fault
Myth 1: many families on th public assistance rolls include an able-bodied father who refuses to work. Fact: ___.
the vast majority of TANF families are headed by one parent- mostly mothers who are unmarried, divorced, widowed, or separated
Myth 2: most poor people are on public assistance, and the number is growing. Fact: ___.
less than 1/4 of families living below the poverty line recieve TANF assistance
Myth 3: Recipient mothers have more children in order to collect greater benefits; therefore, families on public assistance are large and steadily grow in size. Fact: ____.
the average size of TANF families (2005) was averaged at 2.2; 1/3 of TANF families have only one child; and most states have a family cap legislation
Myth 4: Once on welfare, always on welfare. Fact: ___.
Irrelevant wtih the time limit imposed in 1996
Myth 5: Welfare programs create dependency, which is transmitted intergenerationally. Fact: ____.
Again irrelevant with TANF; however, before TANF families were on assistance for an average of four years
Myth 6: Most welfare recipients are African Americans and Hispanic Americans. Fact: ___.
Whites 43.3%; AA 30.3%; HA 26.4%
Myth 7: Public assistance benefits provide a disincentive to work; people on welfare either do not want to work or are to lazy to work. Fact: ____.
25% employed; 60% in school; and 15% looking for work
Myth 8: Public assistance recipients are doing better than ever. Fact: ____.
Benefit levels do not keep up with inflation. The opposite of the myth is true.
Myth 9: Never married teen mothers constitute the bulk of welfare recipients. Fact: ____.
the average age of recipients in 2005 was 34.3
Myth 10: It is easy to get on public assistance and too many undeserving people are recieving benefits. Fact: ____.
Typically involves extensive documentation and verification; only 25% of applicants recieve welfare benefits
Myth 11: Public assistance recipients migrate to states where benefits are high. Fact: ____.
poor people migrate for the same reason non-poor people migrate: jobs and good economies; some people may migrate for better benefits therefore the answer is unclear
Myth 12: Welfare spending consumes a large portion of state budgets. Fact: ____.
even before TANF surpluses, states spent only about 3.4% of the total budget on AFDC
Myth 13: TANF benefits influence decisions relation to family composition by encouraging women to head their own households. Fact: ____.
total benefits have declined but the rate of single female headed households has remained relatively stable
AFDC was a very ____ program that started as ____ as part of the ____.
- Social Security Act of 1935
In 1950 the ADC led to the ____ because only families without ___ were eligible.
- desertion of fathers
- an able-bodied father
In 1961 a new component to ADC was added that allowed families with fathers in the household to recieve benefits only if the father had ____.
an incapcity to work or was unemployed
In 1968 the U.S Supreme court struck down on the "man in the house" rule by ____.
having social workers make late night house calls to determine if a man was present
In 1988 the ____ change AFDC from income support to a work and training program
Family Support Act
In 1996 Bill Clinton signed the ___ , a complex 900 page document that replaced AFDC, JOBS, and the Emergency Assistance Program with the Temporary Aid for Needy Families (TANF) program
PRWORA: The Personal Responsibility and Work Opportunity Reconciliation Act