Administrative Burden

Administrative Burden

Policymaking by Other Means

Pamela Herd, Donald P. Moynihan

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.

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