A negative income tax system would

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

Negative Income Tax

A welfare system within which individuals earning below a certain amount receive supplemental pay from the government instead of paying taxes.

Income Distribution

Income distribution is the way in which total income is shared among the population of a country or region.

Progressive Tax Rates

A tax system where the tax rate increases as the taxable amount or income increases, imposing a higher percentage rate on higher income earners.