andyortlieb@lemmy.sdf.org to You Should Know@lemmy.world · edit-226 days agoYSK: In economics, a negative income tax (NIT) is a system which reverses the direction in which tax is paid for incomes below a certain level.en.m.wikipedia.orgexternal-linkmessage-square70fedilinkarrow-up1320arrow-down15
arrow-up1315arrow-down1external-linkYSK: In economics, a negative income tax (NIT) is a system which reverses the direction in which tax is paid for incomes below a certain level.en.m.wikipedia.organdyortlieb@lemmy.sdf.org to You Should Know@lemmy.world · edit-226 days agomessage-square70fedilink
minus-squarehumanspiral@lemmy.calinkfedilinkarrow-up3arrow-down1·24 days agoIt is not. EITC is a tax reduction for the first few $1000s of employment income. NIT is a tax refund even if you pay no taxes.
minus-squarecandybrie@lemmy.worldlinkfedilinkarrow-up3·24 days agoEIT is a refundable tax credit. Meaning if your total tax burden is less than the credit, federal government will pay you the difference. A part of the child tax credit is the same.
It is not. EITC is a tax reduction for the first few $1000s of employment income. NIT is a tax refund even if you pay no taxes.
EIT is a refundable tax credit. Meaning if your total tax burden is less than the credit, federal government will pay you the difference. A part of the child tax credit is the same.