What is the welfare reform suggestion of “Negative Income Tax”
Select one:
a. A program where all welfare programs are consolidated into one cash-transfer program. As recipients increase their income, they receive less money from the government.
b. It allows recipients to put money away in savings and reduce their tax bill
c. Welfare recipients are required to work while the are receiving welfare payments
d. It is essentially a food stamps program that allows families to purchase food at reduced prices
option a is correct.
A program where all welfare programs are consolidated into one cash-transfer program. As recipients increase their income, they receive less money from the government. with an NIT, the need for minimum wage, food stamps, welfare, social security programs and other government assistance programs could be eliminated, thus reducing the administrative effort and cost to a fraction of what it is under the current system, as well as eliminating the perverse incentives created by these overlapping aid programs
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