Lesson 14- Glossary
Welfare State
A philosophy that government should intervene to help people who are poor, sick, or unemployed as well as provide equal access to education, health care, and social services.
Social Welfare Safety Net
Government programs, such as Employment Insurance and the Child Tax Credit, established to help vulnerable members of the population.
Transfer payments
Direct payments from governments to other governments or to individuals; a mechanism for providing social security, income support, and alleviation of regional disparities.
Marginal tax rate
The tax rate paid on an increase in an individual’s income.
Universality
A principle of the Canadian welfare state specifying that some benefits, such as health care, should be available to all citizens, regardless of income.
Progressive tax
A tax (such as income tax) in which the tax rate increases as an individual’s income increases.
Regressive tax
A tax rate that takes a proportionally lower percentage from higher-income earners.
Proportional tax
A tax that takes a constant percentage for all income earners