Negative income tax plans have the advantage of increasing work incentives in comparison to existing welfare programs without work incentives.

Question

Quizplus · Accepted Answer

Negative income tax plans, such as the Earned Income Tax Credit, provide greater financial support for low-income individuals and families while also incentivizing work. In contrast, many traditional welfare programs have strict income limits or reduce benefits as individuals earn more, which can discourage work and make it difficult to break the cycle of poverty.

Negative Income Tax Plans Have the Advantage of Increasing Work