negative income tax
noun
: a system of federal subsidy payments to families with incomes below a stipulated level
Examples of negative income tax in a Sentence
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In a negative income tax, a tax filer below the federal poverty line, adjusted for a geographic cost of living, would receive from the IRS the difference between the income filed and the poverty line.
—
Elise Amez-Droz and Phillip Phan,
STAT,
6 Oct. 2022
If those receiving the negative income tax lost their job, the spell of unemployment lasted two months longer on average than with non-recipients and 12 months longer for married women.
—
Milton Ezrati,
Forbes,
15 Apr. 2021
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Elise Amez-Droz and Phillip Phan,
STAT,
6 Oct. 2022
If those receiving the negative income tax lost their job, the spell of unemployment lasted two months longer on average than with non-recipients and 12 months longer for married women.
—
Milton Ezrati,
Forbes,
15 Apr. 2021
Cite this Entry
“Negative income tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/negative%20income%20tax. Accessed 2 Jul. 2026.
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