If the negative income tax rate is less than 100 percent,the break-even income level will be lower than the poverty level,and families who are officially considered poor will not receive the benefits.

Question

Quizplus · Accepted Answer

If the negative income tax rate is less than 100 percent, the break-even income level can still be at or above the poverty level, allowing families considered poor to receive benefits. The break-even point depends on the specific parameters of the tax system, not solely on the tax rate.

If the Negative Income Tax Rate Is Less Than 100