it's called a negative income tax because instead of bottoming out at you owing the government $0, it can become negative, so the government can owe you money. that's right! taxes, bitches!
T-Rex: A negative income tax, or "NIT", is when the government pays you money when your income is low! Pretty sweet!
Narrator: NEGATIVE INCOME TAX COMICS
Narrator: it will be interesting I PROMISE
T-Rex: But there is a catch. You still pay taxes - say, a flat tax of 10% - BUT, the government also pays you enough to survive! This way there's a guaranteed minimum income - like welfare, but simpler. So if you make only $1000 in a year you'll pay $100 in taxes, but since the government pays everyone, say, $10000, you'll end up $9900 ahead in tax money. As you make more money, you net less from the government, until you end up actually paying taxes!
Utahraptor: So this acts to replace welfare?
T-Rex: Yep! And a bunch of related programs.
T-Rex: It simplifies things, plus it includes a flat tax, which a lot of amateur economists AS WELL AS even some real economists like!
Utahraptor: I can see fraud being a problem, though, especially since if the fraud's successful, the government loses real money.
Narrator: LATER:
T-Rex: Utahraptor! I just found out that Milton Friedman, proposer of the NIT, died yesterday at age 94!
Utahraptor: One wonders if our conversation today would be an appropriate epitaph.
T-Rex: Dude! I believe this not to be the case!!