Income-Tested Transfer Programs

Income Tested Transfer Programs: The Case for and Against covers the proceedings of the 1979 conference of leading scientists, sponsored by the Institute for Research on Poverty. The contributors consider the contribution of social science knowledge and analysis in settling the arguments in the debate about the merits of income testing in transfer programs.

This text is divided into 13 chapters and begins with an overview of the history, stigmatization processes, and social cohesion of the program. The succeeding chapters define the terms "income-tested and "non-income-tested , as well as the historical importance of the income-testing issue. The discussion then shifts to the development of both income-tested and non-income tested programs in the United States. These topics are followed by surveys of the income support system and the issues in the income-testing debate. The remaining chapters provide evidence that most Americans have too much income testing in the overall income maintenance system. These chapters also present a reform agenda designed to reduce the role of income testing.

This book will be of value to social scientists, social welfare workers, and researchers.

Contenu

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