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Negative Income Tax
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cmtoo
07-Sep-19, 03:02

Negative Income Tax
In economics, a negative income tax (NIT) is a welfare system within an income tax where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.

Such a system has been discussed by economists but never fully implemented. According to surveys however, the consensus view among economists is that the "government should restructure the welfare system along the lines" of one. It was described by British politician Juliet Rhys-Williams in the 1940s and later by American free-market economist Milton Friedman.

In a negative income tax system, people earning a certain income level would owe no taxes; those earning more than that would pay a proportion of their income above that level; and those below that level would receive a payment of a proportion of their shortfall, which is the amount their income falls below that level.

From Wikipedia, the free encyclopedia en.wikipedia.org
baddeeds
08-Sep-19, 11:03

I see why they do that, but I agree with your assessment, cmtoo. They feel like the people who don't make as much can't afford to pay the same percentage. However, many people, the ones that earn more, view this as unfair that now they're going to get charged more, whereas, the ones that don't earn as much also aren't working as hard.



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