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PUBLIC INCOME TRANSFER PROGRAMS:
THE INCIDENCE OF MULTIPLE BENEFITS
AND THE ISSUES RAISED BY THEIR RECEIPT

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JOINT ECONOMIC COMMITTEE

(Created pursuant to sec. 5(a) of Public Law 304, 79th Cong.)

WILLIAM PROXMIRE, Wisconsin, Chairman
WRIGHT PATMAN, Texas, Vice Chairman

SENATE

JOHN SPARKMAN, Alabama

J. W. FULBRIGHT, Arkansas
ABRAHAM RIBICOFF, Connecticut
HUBERT H. HUMPHREY, Minnesota
LLOYD M. BENTSEN, JR., Texas
JACOB K. JAVITS, New York
JACK MILLER, Iowa
CHARLES H. PERCY, Illinois

JAMES B. PEARSON, Kansas

LUCY A. FALCONE

JOHN R. KARLIK

HOUSE OF REPRESENTATIVES
RICHARD BOLLING, Missouri
HALE BOGGS, Louisiana

HENRY S. REUSS, Wisconsin

MARTHA W. GRIFFITHS, Michigan

WILLIAM S. MOORHEAD, Pennsylvania
WILLIAM B. WIDNALL, New Jersey
BARBER B. CONABLE, JR., New York
CLARENCE J. BROWN, Ohio
BEN B. BLACKBURN, Georgia

JOHN R. STARK, Executive Director
JAMES W. KNOWLES, Director of Research

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Minority: GEORGE D. KRUMBHAAR, JR. (Counsel) WALTER B. LAESSIG (Counsel)

LESLIE J. BANDER

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For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price 30 cents

LETTERS OF TRANSMITTAL

To the Members of the Joint Economic Committee:

APRIL 3, 1972.

Transmitted herewith is a study of welfare programs entitled "Public Income Transfer Programs: The Incidence of Multiple Benefits and the Issues Raised by Their Receipt," by James R. Storey. This is the first in a series of studies being prepared for the use of the Subcommittee on Fiscal Policy in connection with a comprehensive study of this Nation's welfare-related programs under the general title of Studies in Public Welfare. This study undertakes to analyze the issues raised by the fact that many persons receiving welfare benefits are aided by more than one such program, whether in the form of cash benefits or benefits in kind.

The views expressed in this paper are exclusively those of the author and do not necessarily represent the views of the Subcommittee on Fiscal Policy, the Joint Economic Committee, individual members thereof, or its staff.

Hon. WILLIAM PROXMIRE,

WILLIAM PROXMIRE,

Chairman, Joint Economic Committee.

Chairman, Joint Economic Committee,

U.S. Congress, Washington, D.C.

MARCH 29, 1972.

DEAR MR. CHAIRMAN: Transmitted herewith is a study entitled "Public Income Transfer Programs: The Incidence of Multiple Benefits and the Issues Raised by Their Receipt," prepared by James R. Storey of the subcommittee staff. This is the first of a number of such study papers being prepared to forward the work of the Subcommittee on Fiscal Policy in its objective and nonpartisan review of all phases of the Nation's system of welfare-related programs. The studies will be published in a series under the general title of Studies in Public Welfare.

This study analyzes the issues raised by the fact that many persons receiving welfare benefits under public programs are aided by cash or in-kind benefits under more than one such program and estimates the extent of such overlaps. It is estimated that the 119 million beneficiaries expected to be aided in fiscal year 1972 by the income transfer programs covered in this analysis are actually comprised of no more than 60 million different individuals. Multiple benefits do not imply wrongdoing on the part of recipients nor do they imply that all persons in need are adequately provided for; but these program overlaps may produce results quite different from those intended by policy

makers when each program was enacted individually. There are potential effects on the following: work incentives, family stability, fraud, administrative error, inequities, and effectiveness in carrying out legislative intent. This first view of problems associated with the multiple program structure of our welfare system emphasizes the great importance of further investigation into program interrelations.

The views expressed in this paper are exclusively those of the author and do not necessarily represent the views of the Subcommittee on Fiscal Policy, the Joint Economic Committee, individual members thereof, or its staff.

MARTHA W. GRIFFITHS,

Chairman, Subcommittee on Fiscal Policy.

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