| A | B |
|---|
| Block grants | a form of fiscal federalism where federal aid is given to the states with few strings attached. |
| Culture of poverty | the establishment of an income level by government that references the point at which an individual is considered to be living in poverty. |
| Entitlements | those benefits guaranteed by law paid to individuals by the federal government, such as Social Security. |
| Flat tax | an alternative to the progressive income tax where individuals pay the same percentage regardless of how much they earn. |
| Food stamp program | federally funded program gives food coupons to low income people based on income and family size |
| Income distribution | the portion of national income that individuals and groups earn. |
| Medicaid | a shared program between the federal and local governments that covers hospital and nursing home costs of low-income people. |
| Medicare | program that covers hospital and medical costs of people 65 years of age and older as well as disabled individuals receiving Social Security. |
| Poverty line | references the point at which an individual is considered living in what has been called a "culture of poverty." |
| Progressive tax | a tax based upon the amount of money an individual earned, such as an income tax. Became legal as a result of the ratification of the Sixteenth Amendment to the Constitution. |
| Regressive tax | a tax that is imposed on individuals regardless of how much they earn, such as a sales tax. |
| Safety net | a minimum government guarantee that ensures that individuals living in poverty will receive support in the form of social welfare programs. |
| Social welfare | Entitlement programs such as Social Security and programs such as Aid to Dependent Children paid for by the federal government. |
| Workfare | an alternative to the traditional welfare, where an individual is trained to work instead of receiving welfare. |
