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Replace All or Most Entitlement Programs with a Negative Income Tax and Create a Flat Tax for Others

Created by I.B. on May 08, 2013

I propose a new tax program. This program eliminates all or most of the costly and often inefficient entitlement programs and replaces them with a negative income tax. For those not on the negative income tax, a new flat rate.

The negative income tax shall work as follows. Set an amount as a "cut-off" amount. The amounts should be relatively low. The amount can be changed according to household size. If an earner makes less than the fixed amount, he or she shall receive 50% of the difference in a "debit" card. This way, the incentive to be more productive will increase. If one earns more money, there will not be as large a "punishment." If one reaches the "cutoff amount", he or she shall pay no taxes. All income above that amount will be taxed at the flat rate of 15% (open to change)

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