3 ms·
A negative income tax is equivalent to UBI combined with increased taxes on mid to top bracket earners. There are some practical concerns such as potential admi
by millimeterman 4y ago
A negative income tax is equivalent to UBI combined with increased taxes on mid to top bracket earners. There are some practical concerns such as potential administrative waste from having to distribute and then immediately tax away UBI money or ensuring that NIT is set up to not strain the already extremely tight liquidity/cashflow of low income households (also a problem with the EITC).
> There is of course some concern about how you'd implement a negative income tax
The machinery for this already exists due to the EITC. Expanding it to people without employment is a valid concern, but tax rebates based on income are not a totally foreign idea.