negative in-come tax

negative income tax

noun
a system of income subsidy through which persons having less than a certain annual income receive money from the government rather than pay taxes to it.
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American Heritage
Cultural Dictionary

negative income tax definition


A plan to raise the income of the poor by direct cash subsidies. Instead of paying an income tax, the poor would receive a cash payment from the government.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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