ncome Maintenance and work Incentives In the simplest possible case, a states welfare program can be characterized by two variables G-the basic grant the individual receives when not working t-the rate at which the grant is taken away when the recipient earns income the tax rate11 Income Maintenance and Work Incentives • In the simplest possible case, a state’s welfare program can be characterized by two variables: • G – the basic grant the individual receives when not working. • t – the rate at which the grant is taken away when the recipient earns income; the tax rate