Welfare Policy

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August 31, 2024 4 min read Definitions

Negative Income Tax: Income Redistribution Mechanism

Economics Finance Social Sciences Income Redistribution Social Security Benefits Welfare Policy Tax System Economic Inequality

A means of targeting social security benefits to those most in need using the income-tax system. After submitting an income-tax return showing an income level below a set minimum, an individual would receive a direct subsidy from the tax authorities bringing income up to that level.

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