However, governmental bodies in the US and elsewhere also employ a wide array of mandates and tax-based benefits and incentives to carry out social policy. This distinguishes the US in particular from most European countries that rely more on cash benefits or non-cash benefits administered directly by governments.
But governments are not limited to direct benefits. Governments may also employ “tax breaks for social purposes” (TBSPs) including tax credits for child care, and tax breaks for health-care related spending.
Furthermore, in the United States — more so than in other countries — governments create tax incentives and mandates that lead to high levels of “private social expenditure.” The OECD defines these private expenditures as expenditures that are designed to redistribute wealth, but are not administered directly by government agencies: