Solution: Get the money out of the hands of politicians and into the people’s purse. The Negative Income Tax (NIT) system is a simple tax code change that will do 3 things for the citizenry: encourage financial responsibility, incentivize economic participation, and provide support to those who need it indiscriminately.
How It Works: Recipients that earn less than the median income will get an increase to their standard deduction ($12,950 -> $20,000 single filer and $19,400 -> $45,000 joint filers) and the aggregate value of a filers exemptions + deductions will act as a threshold which if not surpassed that value the filer will receive a subsidy of 50% of the difference.
I am a 26 year old single man and my exemptions + deductions = $20,000 for 2021
I earn $12,000 in 2021 and would receive $4,000 ($20,000 – $12,000 = $8,000 x 0.5) as a cash subsidy since I did not reach the level of my aggregate deductions. My 2021 subsidy is distributed either through my paycheck or direct deposit from the IRS much like stimulus checks.
How Does This Help
- Curbs Inflation that is currently out of control as government spending continues to radically impoverish Americans saving their money and acting responsibly.
- Gives subsidies to people rather than to government burecratic agencies/big businesses.
- Empowers small businesses to provide opportunites to high risk/low skilled workers to gain experience and build competence in their desired area of expertise.
- Creates incentives for business to serve the people for their money rather than serving the government agencies or other businesses.