Respuesta :
In the middle of a severe recession, congress passes an increase in the level of unemployment benefits. this would be considered by economists as a negative tax.
What is a negative tax?
A means to give money to those with incomes below a set threshold is through the negative income tax. People with low incomes would receive money back from the government as opposed to paying money to the government like they would under a conventional income tax.
When you experience losses and have no revenue for the year, negative income tax becomes an issue. This only applies to self-employed people because, if a salaried person has no income in a given year, they fall into the 0 tax rate and are therefore not required to pay any taxes.
To learn more about the negative tax refer to:
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