In the determination of disposable income, transfer payments are treated as if they
A)are the same as taxes.
B)did not exist.
C)are the opposite of taxes.
D)were a constant amount.

Question

Quizplus · Accepted Answer

Transfer payments are treated as the opposite of taxes in the determination of disposable income because while taxes reduce disposable income, transfer payments (like social security, unemployment benefits, etc.) increase it.

In the Determination of Disposable Income, Transfer Payments Are Treated