negative income tax

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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.

Negative Income Tax

A tax system or bracket in which persons with an adjusted gross income below a certain amount receive money from the government. This system intends to bring people out of poverty, or at least to make their situations less difficult.

negative income tax

a proposed TAX system aimed at linking the TAXATION and SOCIAL-SECURITY BENEFITS systems for low-income or no-income members of society. This is done by replacing the separate systems for collecting PROGRESSIVE TAXATION and for paying social security benefits by a single system that links the two together by establishing a common stipulated minimum income level, taxing those above it and giving tax credits to those below it.

Proponents of the negative income-tax system point to its advantages in assisting in the removal of the POVERTY TRAP and in making labour markets more flexible. See SUPPLY-SIDE ECONOMICS.

References in periodicals archive ?
Negative tax bases allow taxpayers to deduct losses in the following ten financial years.
With regard to Bitcoin, one thing is clear: Clients should consult with tax professionals prior to structuring transactions using Bitcoin to ensure that negative tax implications are avoided.
"When you put together depreciation on buildings, and do it with borrowed money, you get a negative tax rate.
Note that Roth IRA conversions can also create negative tax consequences (although they are often beneficial over the long run).
The data also reveal that some states enjoy a net negative tax price for their publicly provided goods and services, which is exhibited whenever the tax-price curve has a negative slope between states.
For instance, how can we explain a participant choosing to withdraw funds from a defined contribution account to pay near-term expenses, when he will face such negative tax and retirement readiness implications?
* A wealthy individual tax client of a midsize CPA firm sold his business, which resulted in negative tax consequences.
Additionally, partners can have negative tax capital accounts as a result of receiving depreciation deductions and cash distributions over the years.
Moreover, the nondiscrimination condition also applies to subsidies, with subsidy rates expressed as negative tax rates.
In turn, that favorable home-state bias, or loyalty, is challenged and diminished when consumers are confronted with a "negative tax surprise."
In response to the negative tax shock, the government decided to
The inflation, he said is an indiscriminate negative tax on income as it reduces the purchasing power of all groups, and the low income groups are hit hardest.