1) In 1967, the AFDC program moved in the direction of a negative income tax
, with a reduction in the marginal tax rate from 100% to 67%, although categorical eligibility requirements continued.
The how is of course the negative income tax
, which is a better way to alleviate poverty than through the existing welfare apparatus (or by way of minimum wages, farm price supports, public housing, and so forth).
These two reports propose a "new architecture" and extrapolate from the analysis of child poverty to make the case for a negative income tax
as the foundation of adult anti-poverty policy.
In his 1962 book ``Capitalism and Freedom,'' he wrote, ``We should replace the ragbag of specific welfare programs with a single comprehensive program of income supplements in cash -- a negative income tax
A family of four does not pay income taxes until it makes about $28,000, provided it applies for the earned income tax credit, a form of negative income tax
that has done more than any other government program in recent years to lift people out of poverty and to encourage work.
However, as illustrated in TAMs 200010010 and 200011005, if a GRAT/GRUT does borrow from a third party, there may be negative income tax
consequences associated with such borrowing, whether the loan is incurred to pay the annuity or unitrust payment or for some other reason.
Without externalities, redistribution through education is an inferior approach to direct wage subsidies, although it is frequently superior to a negative income tax
citizens abroad; in addition, the refundable portion of the EIC was treated as a negative income tax
Although the negative income tax
has been discussed as an alternative to the present welfare system for individuals (and appears to a limited extent in the present earned income tax credit), it has not been used to help indigent corporations.
Thus, the credit is a form of a negative income tax
and therefore refundable to taxpayers who have no tax liability or whose tax liability is less than the amount of the credit.
The concept of a negative income tax
had surfaced in academic and political discussions.
Despite negative results before tax, the group revealed a slightly negative income tax