Pros And Cons Of A Negative Income Tax System

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The debate that took place in class on Friday, May 29th, focused strictly on the possible implementation of a negative income tax that would supplement the income of low-wage earners with the taxes paid by higher-wage earners. If put into effect this system would, in a sense, replace the welfare programs that are currently in place. The six debaters, three arguing for negative a income tax system and three arguing against, did a very good job bringing up some important evidence that defended their sides. One of the key points brought up by the affirmative side of the debate included the facts that our current welfare system is already extremely disorganized, and can even be considered unsustainable in the long run. Another affirmative topic was that this system would provide true income inequality to all Americans, not just those who have the ability to pay for tax loopholes. The negative side, on the other hand, argued that this system would often cause those earning beneath the fixed income tax line to have little incentive find work and that it such a program wouldn’t provide the same amount of benefits that many low-income individuals have …show more content…

The first major point that I found very intriguing was just how convoluted America’s current welfare and tax system is. Many people try to cheat the system that we have in place by finding loopholes for personal gain, and with the lack of organization that can exist can serve to only heighten this issue. Another key topic was how this new system would virtually dissolve the IRS and could possibly be a much more cost effective method of distributing governmental aid. One of the last subjects that is often used when arguing for negative income tax is that it would not decrease job opportunities, as minimum wage often does, which would also help to alleviate

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