Nearly 80% of enrollment is "just a transfer of income from the government to families of four year olds" who would have attended preschool anyway.
In our generous society, the bottom fifth does receive a lot of transfer income from government programs, such as Social Security retirement and disability payments, federal, state and local welfare programs, education assistance, etc.
But the measures of income usually reported as showing rising inequality do not even include such transfer payments in their definition of income.
In the past couple of years, much of the saving by consumers has been of income received through transfer payments from the government, which were borrowed.
Such systems tax the income of workers and transfer it to pensioners.
In its review, the CBO found that households in the bottom 20 percent of the income distribution in 1979 received just over half of all government transfer payments.
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For the top fifth, by contrast, such transfer payments represented less than 2% of household income.
But he said there was a "debate to be had" about whether "income transfer" or deeper causes of child poverty and social mobility should be examined.
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Indebted governments would be able to transfer debt in excess of a 60% of national income or GDP to a debt reduction fund which would agree to freeze the money owed for 10 years in return for the government carrying out agreed economic reform.
The allocation of GST exemption to a transfer or to a trust excludes from the GST tax not only the amount of the transfer or trust assets equal to the amount of GST exemption allocated, but also all appreciation and income on that amount during the existence of the trust.
It subsumes the income-transfer scheme that was the heart of Fome Zero (zero hunger), initially touted by Lula as his government's trademark.
The committee generally also studies another monthly indicator of economy-wide activity, personal income less transfer payments, in real terms, adjusted for price changes.
While most of the poorest are nowadays covered by government cash-transfer programmes, those in the third to the fifth deciles of income distribution are now at risk of falling into poverty, Mr Levy says.
Transfer payments are not reported as income on tax returns, so all of this income for lower income households is missed.
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As Reynolds reports, most income received by the bottom fifth of households is from such transfer payments, nearly 80% in 2001, for example.
Since the Earned Income Tax Credit (EITC) became part of the income tax code in 1975, it has quietly become the largest cash transfer program in the United States.
Also, there can be an installment sale (when the value of the asset is low) to a defective grantor trust that is a completed transfer but not taxed for income tax purposes.
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Since the old, who have shorter time horizons, have larger propensities to consume than do the young, this transfer has fueled a huge increase in personal consumption, reducing our national saving rate (saving as a share of national income) from 10 to 15% in the 1950s and 60s to a negative 1.5% last year.
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