negative income tax


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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]
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References in periodicals archive ?
When the Ripon Society, a liberal Republican group, endorsed the negative income tax in 1967, it cited Robert Theobald along with Friedman.
The negative income tax may be the best way possible to achieve simplicity, inclusiveness, and moderate taxpayer cost.
It is a concept that goes by many names: basic income, negative income tax, guaranteed annual income, among others.
Similarly, something akin to a negative income tax could be achieved through an enhanced working income tax benefit.
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.
Economist Milton Friedman, the 1976 Nobel laureate, proposed a negative income tax for society's poorest members in "Capitalism & Freedom" (1962).
Kumara Swamy Measure of Welfare Gap, the country has 76 per cent of the population living below the poverty line; and, to give relief to low-income earners as partners in economic development of the country, negative income tax is proposed.
Since consumption taxation is regressive, since poor people spend all income, a negative income tax for the poor can maintain tax equity.
6, 2010 (CENS)--With income inequality drawing national attention recently, the Executive Yuan (the Cabinet) is considering again the program for subsidizing low-income families, the so-called negative income tax or earned income tax credit (EITC).
In his 1961 book "Capitalism and Freedom," he developed the idea of a negative income tax system, an inverted progressive income tax, to guarantee a minimum income to poor families.
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).