Asked by
Janiely Brito
on Dec 17, 2024
Verified
Refer to Scenario 20-4. The government does not have to pay a subsidy to any family through this negative income tax if the family with the lowest income earns $50,000.
Negative Income Tax
A fiscal mechanism where individuals earning below a certain threshold receive supplemental pay from the government instead of paying taxes.
Subsidy
A financial contribution provided by the government or another body to support an industry, business, or individual.
- Analyze divergent strategies and perspectives for the redistribution of fiscal resources, encompassing negative income taxes and the Earned Income Tax Credit.
Verified Answer
LA
Learning Objectives
- Analyze divergent strategies and perspectives for the redistribution of fiscal resources, encompassing negative income taxes and the Earned Income Tax Credit.