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    Business
  3. Study Set
    Public Finance in Canada
  4. Exam
    Exam 12: Social Welfare Programs
  5. Question
    An Implicit Tax Rate of 100 Percent on Additional Earnings
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An Implicit Tax Rate of 100 Percent on Additional Earnings

Question 2

Question 2

Multiple Choice

An implicit tax rate of 100 percent on additional earnings for social assistance recipients not working, which represents a disincentive to enter the labour force, is referred to as


A) a welfare wall.
B) a negative income tax.
C) a negative work incentive.
D) welfare dependence.

Correct Answer:

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