The Negative Income Tax Experiment in New Jersey: General Discussion

Publisher: Mathematica Policy Research
Apr 26, 1969
David Kershaw

Key Findings:

  • For those unable or unwilling to work, the negative tax would provide support payments bringing them up to the prescribed guarantee level.
  • This group would include elderly people, those with disabilities, and unemployed and underemployed teenagers.
  • Impacts on families with an earner are more complex but for those with an unemployed earner, it would help to weather the difficult period between jobs. 
This report explains the negative income tax—what it is and how it works. It also discusses its possible impact on different groups and how it operated in New Jersey.  It also estimates costs associated with different versions of a negative tax structure and reviews prospects for reform.