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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Cultural definitions for negative income tax

negative income tax

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 New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.