What is Negative Income Tax?

Many people have not heard of the “negative income tax,” and, if you haven’t, don’t worry. It’s not a real thing- just an idea that some people believe in.   

The idea behind the idea, so to speak, is to provide those who are poor with money. People who support the negative income tax believe this is a better solution than the government programs that currently exist, such as subsidized housing and tax credits.

Proponents of this idea think that those with little or no income should file tax returns and then, if they meet certain requirements, be supplied with a pre-determined payment amount based on factors such as household size.

While the negative income tax obviously doesn’t exist yet- and some say it never will- it’s an idea that many people stand strongly behind. And, those who do believe in this idea also tend to support the Basic Income Guarantee, a theoretical policy that would provide a “floor” income for every American, basically ensuring that everyone could maintain a certain sustainable quality of life.

Obviously, these ideas are pretty radical, so it makes sense that people tend to feel very strongly about them one way or the other. People who are “for” ideas like these think that it would help the economy and better the lives of all Americans. Others, however, think it would discourage people from working harder and create even more of an “entitlement” generation.

Right now, though, it’s all just a matter of conjecture and talk. However, no one knows what the future holds, so it’s not a bad idea to think about ideas such as these and to decide where you stand. Who knows? One day, you may have to vote on a matter like this.