An advantage of the negative income tax proposal is that
A)It would allow for the free exercise of consumer choice
B)A family's size would be the fundamental criterion of eligibility
C)It would be favored by middle-income groups
D)Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor
E)None of the above

Question

Quizplus · Accepted Answer

The negative income tax proposal aims to eliminate inequalities in the current anti-poverty programs by concentrating transfer payments on the poor. This would make the program more effective and efficient in targeting those who truly need assistance. Additionally, by eliminating bureaucratic red tape and streamlining the process, it would allow for a greater exercise of consumer choice, making it a more desirable option for middle-income groups as well. Finally, family size would still be a factor in determining eligibility, ensuring that those with larger families receive more support.

An Advantage of the Negative Income Tax Proposal Is That