Which of the following is a transfer payment?
A)a regressive tax
B)a tax deduction
C)Social Security payments
D)an excise tax

Question

Quizplus · Accepted Answer

Social Security payments are considered transfer payments because they involve the government transferring money from one group (taxpayers) to another group (retirees and disabled individuals). Regressive taxes and excise taxes are not transfer payments, as they do not involve direct transfers of funds. Tax deductions are also not transfer payments, as they simply decrease the amount of taxable income and do not involve a direct transfer of funds.

Which of the Following Is a Transfer Payment