Author Question: Describe the advantages that a negative income tax has over other programs that have the same ... (Read 19 times)

Collmarie · **on:** Jun 30, 2018

Describe the advantages that a negative income tax has over other programs that have the same purpose.

Question 2

Which of the following countries hold the most U.S. Treasury securities?
a. Japan and China
b. Taiwan and Brazil
c. United Kingdom
d. Belgium
e. Switzerland

milbourne11 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

First, a negative income tax is less costly to administer than other poverty-fighting programs because it can be administered routinely by the IRS. Second, it avoids the stigma of handouts. Finally, it actually creates an incentive to work because the more income earned, the higher is the household's after-tax income.

Answer to Question 2

a