transfer payment

noun

Definition of transfer payment

1 : a public expenditure made for a purpose (such as unemployment compensation) other than procuring goods or services usually used in plural
2 transfer payments plural : money (such as welfare payments) that is received by individuals and that is neither compensation for goods or services currently supplied nor income from investments

Examples of transfer payment in a Sentence

Recent Examples on the Web But scammers are skilled at persuading job seekers to move their conversations to phone calls, conduct interviews over Skype or transfer payments using peer-to-peer cash transfer apps instead of Upwork's payment processing system. NBC News, "People who turned to Upwork to find freelance gigs say they've lost thousands of dollars to scams," 20 Mar. 2020 In fact, whether or not other OECD nations count their public health services as a transfer payment would have only a small impact on their income distributions since the benefits are supposedly distributed equally to everyone. WSJ, "The OECD’s View of U.S. Inequality Is Mistaken," 28 Aug. 2018 The Congressional Budget Office estimates that the incomes of the top 1 percent of Americans more than tripled from 1979 to 2016, before taxes and government transfer payments are taken into account. Jim Tankersley, New York Times, "Could Tax Increases Speed Up the Economy? Democrats Say Yes," 5 Dec. 2019 For example, some income that people receive is in the form of wages and salaries, and some is in the form of government transfer payments. Joshua R. Hendrickson, National Review, "An Oversimplified, Misleading Argument about Inequality and Taxes," 20 Nov. 2019 After the price hikes had taken effect, the cash-transfer payments which go to the poorest 20% of the population were increased; but by then the damage had been done. The Economist, "The cost of Ecuador’s surrender on fuel subsidies," 17 Oct. 2019 Low-income Americans paid roughly 25%, the authors say, although this excludes transfer payments made to the very poorest households: a misleading omission, some critics reckon. The Economist, "In the past, America was not as unequal as it has become," 24 Oct. 2019 One point of contention is how transfer payments—for example earned income tax credit or Social Security payments—are calculated. Allison Schrager, Quartz, "Elizabeth Warren’s economic advisors are making bold claims about taxes—but can they be verified?," 12 Oct. 2019 The bottom quintile earned 2.2% of all earned income in 2013, but after adjusting for taxes and transfer payments, its share of spendable income rose to 12.9%—six times its proportion of earnings. Phil Gramm And, WSJ, "How Income Equality Helped Trump," 24 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'transfer payment.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of transfer payment

circa 1945, in the meaning defined at sense 1

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The first known use of transfer payment was circa 1945

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Cite this Entry

“Transfer payment.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/transfer%20payment. Accessed 27 Nov. 2020.

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Britannica.com: Encyclopedia article about transfer payment

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