negative income tax


Also found in: Thesaurus, Medical, Financial, Acronyms, Encyclopedia, Wikipedia.

neg′ative in′come tax`


n.
a system of income subsidy through which persons having less than a certain annual income receive money from the government rather than pay taxes to it.
[1965–70]
Mentioned in ?
References in periodicals archive ?
Manzi concluded that taxpayers' moral aversion to subsidizing sloth will ultimately undermine any move to a guaranteed income or negative income tax scheme that lacks work requirements.
An inheritance tax on estates of millionaires can help fund the negative income tax and maintain inter-generational equity, serving as an antidote to plutocracy and rule by billionaire babies.
Milton Friedman's pure negative income tax (replacing all income redistribution programs) never became a legislative proposal.
As described in the book, "the impetus to do something real" about the problem came from Economists Milton Friedman and George Stigler who, in the mid 1940s, wrote a paper that proposed a guaranteed annual income (GAI) and a negative income tax (NIT).
The two main types of policies that can achieve the goal of putting a floor under everyone's income are the Basic Income (BI) and the Negative Income Tax (NIT).
Friedman proposed his idea of a negative income tax as a poverty-alleviation measure and as an alternative to all other existing government programs.
The high profile response was the National Child Benefit System, a negative income tax * paid by Ottawa targeting low-income families with children.
Coming at the problem of poverty from a conservative point of view, Friedman was a lifelong champion of a negative income tax.
Perhaps we could agree that poverty could and should be abolished by means of basic income guarantee (BIG) via a negative income tax.
Lenkowsky is the author of more than 100 articles and a book, Politics, Economics and Welfare Reform: The Failure of the Negative Income Tax.