Because the benefits paid by most universal programs are taxable, their net after- tax yield depends on the income of the recipient. Hence

Question

Quizplus · Accepted Answer

The statement explains that the net benefits of universal programs depend on the income of the recipient since they are taxable. Hence, while the gross payments may be universal, the net benefits are not. This means that option C is the best choice as it accurately reflects this situation. Option A is incorrect because it states that only higher-income households can benefit fully, but it does not necessarily mean that lower-income households cannot benefit at all. Options B, D, and E do not accurately reflect the situation presented in the statement.

Because the Benefits Paid by Most Universal Programs Are Taxable