A negative income tax works by
A)Taxing people until they have a negative income
B)Giving people below a certain income level a lump sum and then taxing further income
C)Giving money to everyone in the U.S
D)Not taxing people who make negative income

Question

Quizplus · Accepted Answer

A negative income tax works by providing a lump sum payment to individuals whose income falls below a certain level, which serves as a basic income guarantee. Any additional income earned above this level is then taxed at a certain rate. This is designed to provide financial assistance to those who need it while also encouraging them to continue working and earning income.

A Negative Income Tax Works by