• sushibowl@feddit.nl
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    22 days ago

    The system you are describing is what most countries use. This is basically just an extension of that intended for people who make so little they need extra assistance.

    Actually, the US Earned Income Tax Credit is basically a version of negative income tax.

    • humanspiral@lemmy.ca
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      21 days ago

      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.

      • candybrie@lemmy.world
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        21 days ago

        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.