+1 for Milton Friedman who almost 50 years ago described a negative income tax as the <i>Revolutionary Subsidy</i>.<p>Basic formula for negative income tax is to apply tax rates on the basis of median income. Friedman offers maximum of 50% of median income as the largest possible subsidy.<p>Assume median income of $50,000. Joe Smith earns $30,000 and therefore has negative income of $20k (median income - actual income). Joe would then receive a negative income tax of 50% his total negative income, or $10,000.  The sum of his earned income + negative income tax = $40,000 &#x2F; year.<p>More here: <a href="https:&#x2F;&#x2F;github.com&#x2F;DeBraid&#x2F;investing-notes&#x2F;blob&#x2F;master&#x2F;negative-income-tax.md" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;DeBraid&#x2F;investing-notes&#x2F;blob&#x2F;master&#x2F;negat...</a>