What Would a Negative Income Tax System Do

question 155

Multiple Choice

What would a negative income tax system do

• A)It would make taxes more regressive.
• B)It would sever the link between tax policy and income distribution.
• C)It would collect from high-income households and give transfers to low-income households.
• D)It would eliminate tax progressivity.

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Definitions:

Treatment Group

An experimental cohort receiving specific interventions or treatments in a research setting aimed at studying the efficacy of those interventions.

Group Culture

The shared values, norms, and practices that guide the behavior of members within a group, influencing how they interact and work together.

Heterogeneity

The quality or state of being diverse in character or content; having components or qualities that are different from each other.

Regulatory Mechanisms

The systems, rules, and procedures established to control, guide, or manage behaviors and processes within organizations or bodies.