Chapter 14 Basic Income or Vital Minimum? A Note on the Distributive Effects of Possible Reforms of the Spanish Income Tax

2007 ◽  
pp. 361-383
Author(s):  
Xisco Oliver ◽  
Amedeo Spadaro
Keyword(s):  
Income Tax ◽  
Basic Income

Another Low Road to Basic Income? Mapping a Pragmatic Model for Adopting a Basic Income in Canada

2017 ◽  
Vol 12 (2) ◽  
Author(s):  
Tracy A Smith-Carrier ◽  
Steven Green
Keyword(s):  
Health Outcomes ◽  
Income Tax ◽  
Social Economic ◽  
Cash Transfers ◽  
Conditional Cash Transfers ◽  
Basic Income ◽  
Income Security ◽  
Disadvantaged Groups ◽  
Negative Income ◽  
Negative Income Tax

AbstractDrawing from both theoretical and empirical research, the literature on basic income (BI) is now voluminous, pronouncing both its merits and its limitations. Burgeoning research documents the impacts of un/conditional cash transfers and negative income tax programs, with many studies highlighting the effectiveness of these programs in reducing poverty, and improving a host of social, economic and health outcomes. We consider possible avenues for BI architecture to be adopted within Canada’s existing constellation of income security programs, to the benefit of disadvantaged groups in society. Identifying key federal and provincial (i.e., Ontario) transfer and tax benefit programs, we highlight which programs might best be maintained or converted to a BI. While opponents decry the (alleged) exorbitant costs of BI schemes, we suggest that the existing approach not only produces an ineffective system—which actually engenders poverty and the health and social problems that accompany it—but an excessively costly one.

scholarly journals THE COST OF NEGATIVE INCOME TAX AS A FISCAL MEASURE TO TACKLE POVERTY IN NORTH MACEDONIA

2020 ◽  
Author(s):  
Ivana Velkovska
Keyword(s):  
Income Tax ◽  
Aggregate Demand ◽  
Household Consumption ◽  
Poor People ◽  
Basic Income ◽  
Positive Effects ◽  
Negative Income ◽  
The World ◽  
The Cost ◽  
Negative Income Tax

This paper makes an effort to evaluate the cost of negative income tax as a fiscal measure aiming to tackle the persistent high poverty rate in Macedonia. Poverty, income inequality and unemployment are expected to rise all around the world due to the pandemic corona virus outbreak and the subsequent economic crisis. Governments around the world have already implemented measures similar to universal basic income with the purpose of increasing household consumption and stimulating aggregate demand but also to mitigate the devastating effects that the recent unfavorable economic developments have on the citizens living in poverty or are at the risk of poverty. However, shrinking fiscal spaces of small economies could be an obstacle to implement such policies. Compared to universal basic income, negative income tax is a less costly policy option that targets the population living in poverty instead of providing payments to everyone regardless of their income. The analysis based on the available data is indicating that implementing such policy would cost as much as 9.7 billion MKD per year, which is 4% of the planned state budget revenues for Y2020, 8% of the planned social transfers for Y2020 and 29% of the funds that the state has made available for tackling the COVID 19 crisis so far. In addition, the negative income tax could trigger various positive effects on the economy. Since poor people spend almost all of their income, it could be expected that implementing negative income tax would rise household consumption. According to the empirical analysis in this paper, household consumption is in highest correlation to GDP growth in Macedonia compared to the other explanatory variables (government consumption, investments, import and export).

‘The Pragmatist’s Solution to Poverty’

2019 ◽  
pp. 125-144
Author(s):  
Peter Sloman
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Tax Credits ◽  
Basic Income ◽  
British Government ◽  
Conservative Government ◽  
System P ◽  
Low Income Families ◽  
The Cost ◽  
Negative Income Tax

The ‘rediscovery of poverty’ prompted a wide-ranging debate over how the British government could best support low-income families. One radical response came from Edward Heath’s Conservative government, which published plans to replace the whole system of personal tax allowances with refundable tax credits—the closest any British government has come to introducing a Universal Basic Income. This chapter examines the origins of the Tax Credit Scheme in 1971–2, which was devised by special adviser Arthur Cockfield in response to the rising cost of tax administration and the difficulty of establishing a selective Negative Income Tax in Britain. As the plans took shape, however, the cost of introducing the reforms on a no-losers basis became a source of growing concern within government. Indeed, Treasury officials were relieved when Labour’s victory in the February 1974 election made it possible to jettison the scheme and focus on simplifying and computerizing the PAYE system.

Feasibility of Financing a Basic Income

2014 ◽  
Vol 9 (1-2) ◽  
Author(s):  
Jordi Arcarons ◽  
Daniel Raventos Pañella ◽  
Lluís Torrens Mèlich
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Basic Income ◽  
Microsimulation Model ◽  
Personal Income Tax ◽  
Tax System

AbstractThis article describes the main results obtained from a microsimulation model designed by the authors in order to analyze the possibilities of financing a Basic Income (BI) in the territory of Catalonia on the basis of information provided by the IRPF (personal income tax) system. The BI proposal guarantees the material existence of the population and is not only desirable but also feasible.

scholarly journals The Universal Basic Income

2019 ◽  
Vol 15 (1) ◽  
Author(s):  
Robert Stephens
Keyword(s):  
Social Security ◽  
Income Tax ◽  
Labour Force ◽  
Personal Income ◽  
Basic Income ◽  
Personal Income Tax ◽  
Flat Rate ◽  
Poverty Relief ◽  
Trade Offs ◽  
Benefit System

A universal basic income (UBI) would provide all citizens with a guaranteed income, irrespective of their earnings, age or household status. It would be financed from a flat-rate personal income tax. It would replace the existing work-based social security system with its plethora of benefit types, abatement rates and eligibility rules. However, when the trade-offs between the competing objectives of a tax/benefit scheme are considered, and the variety of individual and family circumstances that need to be addressed, the apparent simplicity of a UBI quickly disappears. The article shows that while the current tax/benefit system represents a ‘welfare mess’, and needs substantial restructuring, a UBI does not necessarily provide an adequate income for poverty relief, nor ensure labour force incentives, at an acceptable fiscal cost.

Dividendo Sociale e Imposta Negativa: due diversi modi di intepretare la redistribuzione

2009 ◽  
pp. 177-202
Author(s):  
Davide Tondani
Keyword(s):  
Distributive Justice ◽  
Income Tax ◽  
Ethical Issues ◽  
Point Of View ◽  
Basic Income ◽  
Economic Point ◽  
Normative Analysis ◽  
Negative Income ◽  
Negative Income Tax ◽  
Benefit System

- This article examines two redistributive programs: Negative Income Tax and Universal Basic Income. Its aim is to show that, even if the two programs through the implementation of an appropriate tax-benefit system can get the same distributive outcome, they are deeply different, from both the economic point of view and ethic perspective. The approach adopted integrates positive and normative analysis so that an explicit attention to ethical issues provides a more complete descriptive economics. We show that Negative Income Tax scheme is consistent with the libertarian idea of distributive justice, while Basic Income matches with the egalitarian thought.

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