A living allowance deduction would tax only income above regional living wage

Evidence

In exchange, however, I’d add one new deduction that, again, revisits our earliest tax system, where the greatest burden is levied on the wealthy. A living allowance deduction (often seen in flat tax proposals like those favored by some Republican lawmakers) would reduce or eliminate income taxes for those taxpayers who earn less than the living wage in their geographic region. If you earn less than the living wage in your area, as measured by what it takes to actually make ends meet, you are paid the difference at tax time. If you earn more, you pay taxes on that difference. — Dorothy A. Brown, The Whiteness of Wealth, 524

Categorization

• DEFINE: Defines what a living allowance deduction is and its exact mechanism.