Refundable tax credit
Refundable tax credit refers to the concept of giving tax refunds to individuals in excess of the amount of tax actually paid. By making a tax credit refundable, a government uses the tax system to redistribute wealth.
Although some would argue this redistribution is from the affluent to the more needy, it is nevertheless a form of welfare. The simpler description is taking from the rich and giving to the poor, a forced material egalitarianism.
It is a more moderate form of a negative income tax.
In the United States, the main example of this type of credit is the Earned Income Tax Credit.
