TWO INCOME MAINTENANCE PLANS, WORK INCENTIVES AND THE CLOSURE OF THE POVERTY GAP.

The article examines the impact of national income maintenance programs on the alleviation of poverty in the United States. The article describes wage subsidy and negative income tax programs. The study determines the potential impact of each type of program on the income of poor African American and Caucasian families. Each program is evaluated for its potential to alleviate poverty and maintain work incentive. The author asserts that a wage subsidy program has greater potential for positive impact on the income of working poor families.