The negative income tax
: A Republican proposal to help the poor.
But in the late '70s, the news ensured that Jimmy Carter's variation on the negative income tax
would not pass.
Friedman outlines his "negative income tax
" (I'm paraphrasing) this way:
Financial Management Case for Negative Income Tax
First, the very poorest households with children (those earning below $12,000) experience large negative income tax
rates (in absolute value terms) because of the EITC.
The Negative Income Tax
and the Earned Income Tax Credit
It is a "negative tax" in the sense that the government pays you instead of you paying the government, but it doesn't create an income floor as the "negative income tax
" was designed to do.
Steensland outlines some of the highly advanced social science experiments that were devised and carried out in the late 1960s and 1970s to determine the impact upon "work ethic" among other things of the NIT (Negative Income Tax
) form of guaranteed income.
Friedman proposed his idea of a negative income tax
as a poverty-alleviation measure and as an alternative to all other existing government programs.
But he also urged the adoption of a 'negative income tax
' in which people who earn less than a certain amount would get money from the government.
Also, significant differences in the ages of beneficiaries can result in negative income tax
consequences for the younger beneficiaries.
Perhaps we could agree that poverty could and should be abolished by means of basic income guarantee (BIG) via a negative income tax
. Perhaps we all could back a new federal public works program to provide jobs for all those who want to work but cannot find employment in the private market.