JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Alleviation from the Welfare State: Use Your Own Freedom With A Reconsideration of the Negative Income Tax
Author(s): Spencer Barnes
Citation: Spencer Barnes, (2017) "Alleviation from the Welfare State: Use Your Own Freedom With A Reconsideration of the Negative Income Tax," Journal of Applied Business and Economics, Vol. 19, Iss.2, pp. 9-14
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Using data from the Consumer Population Survey (CPS) for March 2013, this study examines the potential effects of a negative income tax on federal government welfare expenditure, household income, and certain variable parameters. The negative income tax is defined as money credited as allowances to a taxed income, and paid as a benefit when it exceeds debited tax. This study concludes that a negative income tax makes welfare more expensive to citizens, but should better society. These results shed some light on a non-conventional approach to addressing income distribution and achieving some socially desirable outcomes.