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This helped offset the employment-depressing effect of transfers, although my estimates suggest that the offset was less than 100 percent (more on those in future blog entries).
But the effect of transfers peters out relatively quickly and does not tend to matter much for industrial output or employment.
The reason for the small effect of transfers is presumably some kind of near-Ricardian equivalence: spending doesn't decline much from a cut in transfers because people expect offsetting tax cuts later.
But the report makes the point that government income transfer programs have changed significantly from 1979 to 2007, with less going to the poor, and more to those in the middle: "The equalizing effect of transfers and taxes on household income was smaller in 2007 than it had been in 1979," according to the C.B.O.
S&P notes that while our tax and transfer system is progressive at any point in time, meaning post-tax inequality is always lower than pre-tax, it has become less so: "the equalizing effect of transfers and taxes on household income was smaller in 2007 than it had been in 1979".
Similar(54)
Sometimes the effect of transfer of training is to hamper effectiveness in subsequent activity.
As a result, opposite trading had the effect of transferring some of the returns of out-of-favor funds to their favored brethren.
The payment, which involves 76% of its overall cost of sales for that year, had the effect of transferring income to the low tax jurisdiction.
In addition, that study found, a family's poorer-performing funds will sometimes take the opposite side of trades undertaken by the family's star funds; this has the effect of transferring performance to those stars.
The government's plan to sponsor an "eradication programme" to the tune of £100 per hectare per year is futile; though it will have the effect of transferring even more public money to rural landowners.
As unusual as such documents appear, a spokesman for Eugene Moore, the Cook County recorder of deeds, said the office had no choice but to accept the documents, which have the legal effect of transferring ownership of the property.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com