Social programs increase those households' before-tax income to $30,500.
To eligible investors it's worth $1.00, to others it's worth only $0.70 (of before-tax income in both cases).
An enduring problem is whether to measure before-tax or after-tax performance.
These loans have been described as tax-disadvantaged, on the theory that the 401(k) contains before-tax dollars, but the loan is repaid with after-tax dollars.
They pay only a small proportion of their before-tax profits in corporation tax and other forms of taxation.
Income represents before-tax family income in 1994.
The current official measure compares before-tax cash income of families to poverty thresholds designed to represent a rough estimate of the cost of minimum basic needs at that time.
Lower pension contributions, all else equal, will produce a dollar-for-dollar increase in before-tax profits.
