Which of the Following Characterizes the Negative Income Tax Concept

question 55

Multiple Choice

Which of the following characterizes the negative income tax concept?

• A) It is a flat tax that lower-income households do not pay.
• B) It is a progressive tax structure with enough deductions to provide refunds to some.
• C) It is a regressive tax with low-income earners getting a refund back when taxes are filed.
• D) It is a guaranteed annual income with earned incomes taxed at a flat rate.
• E) It is an income tax that eliminates all the inefficiency that occurs with the current tax system.

---

Definitions:

Reliability Estimates

Measures or indicators of the consistency or stability of a test, scale, or measurement instrument over time.

Standard Deviation

A measure of variability that describes how scores vary around the mean. In all normal curves the percentage of scores between standard deviation units are the same; hence, the standard deviation combined with the mean can tell us a great deal about a set of test scores.

Percentile Score

A score indicating the percentage of scores in a distribution that a specific score is equal to or higher than.

Specific Area

A distinct part or section within a larger field or space, often designated for a particular purpose or characterized by a unique attribute.