Actuarial Adjustment. Reduction in Social Security benefits for those who claim benefits before the normal retirement age, to account for the additional payments they will receive over their lifetimes by claiming early, and an increase in benefits for those who delay take-up.
Add On. (Compare Carve Out.) Social Security reform proposal that would direct optional worker contributions into individual accounts.
AFDC (Aid to Families with Dependent Children). The federal welfare program—enacted as part of the Social Security Act of 1935 and replaced by TANF after 1996—that gave states grants that were, together with required state matching monies, used to provide cash assistance primarily to low-income single-parent families with children (See TANF.)
Age Discrimination in Employment Act of 1967 (ADEA). Law protecting those ages 40 and older from employment discrimination.
AGI (Adjusted Gross Income). The amount of income counted to determine a filing unit's tax liability. Certain types of income received or payments made (e.g., alimony paid, IRA deductions, moving expenses) are excluded from AGI. See also taxable income.
AIME (Average Indexed Monthly Earnings). The average monthly earnings received over a worker's career, adjusted yearly by the change in national average earnings; it is used to compute Social Security benefits.
AMT (Alternative Minimum Tax). An alternative income tax that was designed to ensure that high-income filers who use tax preferences to substantially reduce or eliminate their tax liability under the regular income tax, pay some minimum amount. In practice, the AMT has been relatively ineffectual. In the future, this complicated tax will increasingly affect middle-income families, partly because its parameters are not indexed for inflation.
Assisted Housing. Housing for the poor that is subsidized by the federal government.
Assisted Living. A combination of housing, personalized support services, and health care designed for those who need help with everyday activities.
Average Tax Rates. Average income tax as a percentage of average income. Average effective tax rates may be calculated with respect to a single tax, such as the individual income tax, or with respect to all taxes together (i.e., including payroll taxes, distributed corporate income taxes, excise taxes, and estate taxes).
