A negative income tax is a policy under whicha. all people with low income get government transfers.b. the government raises tax revenue withoutdistorting incentives.c. everyone pays less than under a conventionalincome tax.d. some taxpayers are on the wrong side of the Laffercurve.
A negative income tax is a policy under whicha. all people with low income get government transfers.b. the government raises tax revenue withoutdistorting incentives.c. everyone pays less than under a conventionalincome tax.d. some taxpayers are on the wrong side of the Laffercurve.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST1: Government Spending And Taxation
Section: Chapter Questions
Problem 5CQ
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Question
A negative income tax is a policy under which
a. all people with low income get government transfers.
b. the government raises tax revenue without
distorting incentives.
c. everyone pays less than under a conventional
income tax.
d. some taxpayers are on the wrong side of the Laffer
curve.
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