Negative Income Tax (redirected from Reverse taxation)

Negative Income Tax

A taxation system where income subsidies are given to persons or families that are below the poverty line.

Notes:

The government will send financial aid to a person who files an income tax return reporting an income below a certain level.

See also: 1040 Form, Ability to Pay, Exemption, Formal Tax Legislation, Horizontal Equity, Income Tax, Refund, Write-Off

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Negative income tax

A proposal to assist taxpayer with below-subsistence-level incomes. After filing a tax return, such persons would receive a subsidy to bring them up above the poverty level.