negative income tax


: a system of federal subsidy payments to families with incomes below a stipulated level

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Example Sentences

Recent Examples on the Web 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 Statistics from earlier federal pilot programs on negative income tax, a variant of UBI, are equally discouraging. Milton Ezrati, Forbes, 15 Apr. 2021 Between 1968 and 1980, Washington made four controlled trials of negative income tax, involving thousands of people across six states. Milton Ezrati, Forbes, 15 Apr. 2021 The Nixon plan was designed to attack poverty and hunger — and essentially to replace welfare — with a negative income tax that would send a flood of money to the poor. David M. Shribman, Milwaukee Journal Sentinel, 25 Mar. 2021 Milton Friedman once suggested that a quasi-UBI in the form of a negative income tax would be a more efficient way to alleviate poverty than the social welfare bureaucracy. The Editorial Board, WSJ, 22 Mar. 2021 This isn’t the first time the state has paid a negative income tax to petroleum companies — in 2016 and 2017, low oil prices combined to create two years of negative corporate income taxes. James Brooks, Anchorage Daily News, 1 Feb. 2021 One of his free-market ideas that hung around for a while without quite getting fully implemented was called a negative income tax. Star Tribune, 19 Sep. 2020 The negative income tax check would help out a family but not eliminate the incentive to earn income from working. Star Tribune, 19 Sep. 2020 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'negative income tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Word History

First Known Use

1950, in the meaning defined above

Time Traveler
The first known use of negative income tax was in 1950

Dictionary Entries Near negative income tax

Cite this Entry

“Negative income tax.” Dictionary, Merriam-Webster, Accessed 1 Oct. 2022.

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