Which of the following is true of income assistance benefits?
A)They decrease as earned income increases.
B)They are taxed at a 20 percent marginal rate.
C)They are taxed at a low marginal rate in order to provide work incentives.
D)They are unaffected by increases in earned income.
E)They are positively related to income from other sources.

Question

Quizplus · Accepted Answer

Income assistance benefits, such as welfare or unemployment benefits, typically decrease as earned income increases in order to provide an incentive for individuals to seek employment and become self-sufficient. The reduction in benefits is typically gradual, allowing individuals to transition off of assistance gradually as their income increases.

Which of the Following Is True of Income Assistance Benefits