An example of a negative income tax is

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The earned income tax credit is an example of a negative income tax because it provides a refundable tax credit to low-income individuals or families based on their income level. This means that instead of paying taxes, eligible taxpayers can receive money back from the government in the form of a tax refund. This is different from traditional tax credits which only reduce the amount of taxes owed. The negative income tax is intended to provide support to individuals and families living in poverty and to encourage work by providing a financial incentive to low-wage workers.

An Example of a Negative Income Tax Is