Friedman first proposed a negative income tax in Capitalism and Freedom in 1962, seeing it as a tool to displace other welfare programs while encouraging labor market participation. 1 The negative income tax became the inspiration for the first attempt to pass a wage subsidy, President Richard Nixon’s failed Family Assistance Plan (FAP). From the ashes of this failure, the Earned Income Tax Credit (EITC) was born.3502 ↱
Administrative Burden
Policymaking by Other Means
Pamela Herd, Donald P. Moynihan