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In the US, the Earned Income Tax Credit is similar to a negative income tax, and has bipartisan support (it was expanded under Clinton, Bush and Obama, for exam
by greeneggs 11y ago
In the US, the Earned Income Tax Credit is similar to a negative income tax, and has bipartisan support (it was expanded under Clinton, Bush and Obama, for example). Economists love it, too.
- dragonwriter 11y ago> In the US, the Earned Income Tax Credit is similar to a negative income tax EITC is like what a person who once heard of negative income tax but wanted to make a Rube Goldberg parody of it would create. A negative income tax would, in its simplest form, instead of limiting AGI to a minimum of zero after deductions, let it go negative, and treat the (negative) calculated liability on that income as a negative total tax liability. (Now, EITC helps a wider range of people -- with qualifying children, it hits about the same point for people without children -- than NIT would with the current deductions available for US taxes, but, that could be addressed by adding greater child deductions than the existing standard deduction.)