Social plans financed in whole or in part by taxation or other mandatory investments by their present or future recipients are described as:

Question

Quizplus · Accepted Answer

Contributory programs are social plans that are funded entirely or in large part by mandatory payments or contributions, such as Social Security or Medicare taxes. The present or future recipients of the benefits contribute to these programs through payroll taxes or other mandatory deductions. This distinguishes contributory programs from means-tested programs, which are based on financial needs and funded by general tax revenues. Public trusts are legal entities established to hold and manage funds for a specific public purpose, and enterprise funds are self-sustaining government activities financed by charges for goods or services. Revenue sharing refers to the distribution of taxation revenue between different levels of government.

Social Plans Financed in Whole or in Part by Taxation