IDS 1: A Negative War on Poverty Act

[🐒Gods of Prosperity🔱🐲💸]

The basic structure of a negative income tax starts with the assumption that at some amount of money you pay no taxes on anything below that amount of money. So for instance if you make $25,000 you pay zero in taxes but you start paying for anything above that so that if you are making $25,100 then if there is a flat tax rate of 5.8% you pay $5.80.  For $26,000 you pay $58, etc.

Then you decide on a percentage to help people when they fall below that number.  So if that percentage is 1%, then if someone makes $24,000, that is a shortfall of $1000, so they get $10.  If they make $5,000 that is a shortfall of $20,000 so that person would get $200, etc.

[🐒Gods of Prosperity🔱🐲💸]

Yes, it looks like that would work.

Of course if you wanted to go for a more generous benefit you could do this all with one formula:  (.058)(Taxable Income - $25000)