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What were the assumptions that came into play with the 10. Aid to Families of Dependent Children (AFDC)? (page 369)
What is :
• Cuts made, assumption was that it assumed income from other sources, e.g. casual income from tips, inheritance gifts, child support -see page 369
• When people received AFDC, if govt assumed they got assumed income, their benefits were cut:
• Assumptions about income:
a. Assumed income meant- Eligibility workers could assume income, received or not, from: Stepfathers, court-ordered support from absent parents, EITC(Earned income tax credits), “windfalls”-gifts, insurance benefits, and small inheritances
b. Allowable assets only up to $1000, except home, car, burial plot, funeral arrangement, marketable real estate
c. Eligibility caps to 150% of state level
d. Age limits for children
e. Eligibility and benefits determined retrospective budgeting of previous months
f. New work provisions placed 100% tax on work earnings.
g. Reporting of causal income such as tips, blood donations, immigrant’s sponsors income, food stamps, women expected to work to 6th month of pregnancy, AFDC for the unemployed parent (AFDC-UP) was allowed at state option