Alleviation from the Welfare State: Use Your Own Freedom With A Reconsideration of the Negative Income Tax

Authors

  • Spencer Barnes Florida State University

Keywords:

Business, Economics, Finance, Tax, CPS, Income Tax

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

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Published

2017-05-01

How to Cite

Barnes, S. (2017). Alleviation from the Welfare State: Use Your Own Freedom With A Reconsideration of the Negative Income Tax. Journal of Applied Business and Economics, 19(2). Retrieved from https://mail.articlegateway.com/index.php/JABE/article/view/697

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Section

Articles