Costs to taxpayers of a negative income tax plan vary inversely with the guaranteed level of income and directly with the income tax rate on earned incomE.

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Costs to taxpayers of a negative income tax plan vary directly with the guaranteed level of income and inversely with the income tax rate on earned income. Higher guaranteed income levels increase costs, while higher tax rates on earned income reduce the net cost by increasing the amount of income taxed.

Costs to Taxpayers of a Negative Income Tax Plan Vary