negative tax

British  

noun

1. Also called: negative income tax.  a payment by the State to a person with a low income, the magnitude of the payment increasing as the income decreases. It is regarded as a form of social welfare

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Example Sentences

DAFs also make it very easy to take illiquid appreciated assets, like real estate or private companies or CryptoKitties, and turn them into charitable funds without worrying about negative tax consequences.

From Slate • May 11, 2018

In 2017, more new rules stripped negative tax lien and civil judgment from consumer credit reports.

From The Verge • Nov. 29, 2017

She confirmed the credit would be refundable — that is, whatever the eventual rules say, at least some low-income taxpayers would qualify for a credit so large they’d get a negative tax bill.

From New York Times • Nov. 2, 2015

Having your activity classified as a hobby has serious, negative tax consequences.

From Forbes • Oct. 4, 2014

The credit operates as a sort of "negative tax," available to workers too poor to owe income tax and is intended to make work more attractive than welfare.

From Time Magazine Archive