A tax system that collects revenue from high-income households and gives transfers and tax concessions to low-income households is known as:

Question

Quizplus · Accepted Answer

A tax system that collects revenue from high-income households and gives transfers and tax concessions to low-income households is known as a negative income tax. This system is designed to provide a guaranteed minimum income for those with low or no income while redistributing resources from high-income households. Social security refers to a specific program for retired or disabled individuals, minimum wage laws set a minimum wage amount that employers must pay, and in-kind transfers refer to non-cash assistance such as food stamps or housing vouchers.

A Tax System That Collects Revenue from High-Income Households and Gives