A decrease in transfer payments works like a tax hike because it reduces the level of disposable income.
A cut in transfer payments works like a tax hike,reducing the disposable income of transfer recipients.

Question

Quizplus · Accepted Answer

A decrease in transfer payments reduces the amount of money that transfer recipients have available to spend, which is similar to how a tax hike reduces disposable income.

A Decrease in Transfer Payments Works Like a Tax Hike