A Negative-Income-Tax Experiment.

  title={A Negative-Income-Tax Experiment.},
  author={David Kershaw},
  journal={Scientific American},
  • D. Kershaw
  • Published 1 October 1972
  • Economics
  • Scientific American
T he welfare-reform proposals of both President Nixon and Senator McGovern embody the concept of the negative income tax: a downward extension of the income-tax system that would pay out cash (negative taxes) to families at the low end of the income scale. An essential feature of the concept is that as a family's income rises above the poverty level the tax payments are reduced by an amount less than the earnings, so that the family is always better off the higher its own earnings are. The… 

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