单词 | negative income tax |
释义 | negative income tax A proposal to combine income tax and social security in a single system. Under this system, all citizens would report their pre-tax incomes; they would then pay tax if their incomes after deducting any allowances to which they were entitled came above some cut-off level, and would receive payments if their income was below the cut-off. The advantage of such a system is that it would remove any stigma attaching to claiming benefits, as every citizen would be subject to the same system. The disadvantage is that either the minimum post-tax-and-benefits income would have to be very low, or tax rates would have to be very high, given the present distribution of pre-tax incomes. There are also problems arising from the fact that, in the UK at least, the unit for taxation is the individual whereas the unit for benefits is the household. |
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