TANE Benefit reduction rates(also known as tax rates)vary from 33% to 100% 100% tax rate means that if a welfare recipient earns $1 in the labor market, her welfare benefit is reduced by exactly $18 TANF • Benefit reduction rates (also known as tax rates) vary from 33% to 100%. – 100% tax rate means that if a welfare recipient earns $1 in the labor market, her welfare benefit is reduced by exactly $1