‘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.

Alternatives to a Citizen’s Basic Income

2018 ◽  
pp. 181-192
Author(s):  
Malcolm Torry
Keyword(s):  
Income Tax ◽  
Tax Credits ◽  
Current Debate ◽  
Basic Income ◽  
Insurance Benefits ◽  
Conservative Government ◽  
Negative Income ◽  
Income Approach ◽  
Negative Income Tax ◽  
Policy Proposals

This chapter examines three policy proposals with characteristics similar to those of a Citizen's Basic Income: Negative Income Tax, genuine Tax Credits and Participation Income. It first considers the Tax Credits scheme proposed by the UK's Conservative government in 1972, and which was close to a genuine Tax Credits scheme before discussing Negative Income Tax and the problems that it entails. It then describes Negative Income Tax experiments with interesting outcomes that have clear implications for the current debate on the Citizen's Basic Income approach to tax and benefits reform. It also looks at Participation Income and the issues that it raises before concluding with an analysis of the outcomes that would be created by an increase in the value of National Insurance Benefits compared to the outcomes of a Citizen's Basic Income.

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).

Negative Income Tax

1982 ◽  
Vol 3 (2) ◽  
pp. 165-180 ◽  
Author(s):  
NEIL J. SALKIND ◽  
RON HASKINS
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Relative Effectiveness ◽  
Educational Status ◽  
General Purpose ◽  
Negative Income ◽  
Income Maintenance ◽  
Low Income Families ◽  
Negative Income Tax ◽  
The Impact

The general purpose of the four negative income tax (NIT) experiments was to evaluate the impact of a guaranteed income on labor participation. Beyond this general objective, certain subobjectives can be identified, three of which define the purpose of this analysis. The first is to determine what effect an income maintenance experiment program can have on the health and educational status of children from low-income families, the second is to examine the long-range effects of such a program, and the third is to complete a policy analysis using these results to consider the relative effectiveness of service programs and income maintenance programs in promoting child development and stability. The results show that the NIT experiments were effective in reducing a child's risk of being at poverty. The implications of this are discussed from several policy perspectives.

Demonstrating Nutrient Cost Gradients: A Brooklyn Case Study

2014 ◽  
Vol 84 (5-6) ◽  
pp. 244-251 ◽  
Author(s):  
Robert J. Karp ◽  
Gary Wong ◽  
Marguerite Orsi
Keyword(s):  
Low Income ◽  
Energy Content ◽  
Food Selection ◽  
The United States ◽  
United States Department ◽  
Micronutrient Deficiencies ◽  
Caloric Density ◽  
Low Income Families ◽  
The Cost ◽  
The Impact

Abstract. Introduction: Foods dense in micronutrients are generally more expensive than those with higher energy content. These cost-differentials may put low-income families at risk of diminished micronutrient intake. Objectives: We sought to determine differences in the cost for iron, folate, and choline in foods available for purchase in a low-income community when assessed for energy content and serving size. Methods: Sixty-nine foods listed in the menu plans provided by the United States Department of Agriculture (USDA) for low-income families were considered, in 10 domains. The cost and micronutrient content for-energy and per-serving of these foods were determined for the three micronutrients. Exact Kruskal-Wallis tests were used for comparisons of energy costs; Spearman rho tests for comparisons of micronutrient content. Ninety families were interviewed in a pediatric clinic to assess the impact of food cost on food selection. Results: Significant differences between domains were shown for energy density with both cost-for-energy (p < 0.001) and cost-per-serving (p < 0.05) comparisons. All three micronutrient contents were significantly correlated with cost-for-energy (p < 0.01). Both iron and choline contents were significantly correlated with cost-per-serving (p < 0.05). Of the 90 families, 38 (42 %) worried about food costs; 40 (44 %) had chosen foods of high caloric density in response to that fear, and 29 of 40 families experiencing both worry and making such food selection. Conclusion: Adjustments to USDA meal plans using cost-for-energy analysis showed differentials for both energy and micronutrients. These differentials were reduced using cost-per-serving analysis, but were not eliminated. A substantial proportion of low-income families are vulnerable to micronutrient deficiencies.

scholarly journals Public Subsidies for Employees' Contributions to Employer-Sponsored Insurance

2001 ◽  
Vol 38 (2) ◽  
pp. 121-132 ◽  
Author(s):  
Mark Merlis
Keyword(s):  
Health Insurance ◽  
Low Income ◽  
Cost Effective ◽  
Tax Credits ◽  
Public Subsidies ◽  
Low Income Families ◽  
Employee Premium Contributions ◽  
Premium Contributions ◽  
Insurance Tax ◽  
Fair Balance

Proposals to provide or subsidize health insurance for low-income families must take account of the fact that many workers have access to employer-sponsored insurance (ESI), but decline it because of required employee premium contributions. This article considers a tax credit for the employee share of ESI in the context of a broader program of income-based health insurance tax credits. Helping uninsured workers pay for available ESI could be more cost-effective than subsidizing their coverage in the nongroup market. The credit would also be available to workers who were already covered, both for equity reasons and to reduce the incentives for employers to drop coverage or for workers to shift to subsidized individual plans. One key issue is how to prevent employers from reducing their current health plan contributions to take advantage of the new funding. Other design questions considered by the article include whether workers should be able to choose between ESI and nongroup coverage, whether minimum benefit standards should apply for employer plans, and how to achieve a fair balance in subsidies for group and nongroup coverage.

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.

The Effects of Behavioural Contracting and Preferred Reinforcement on Appointment Keeping

2000 ◽  
Vol 17 (2) ◽  
pp. 90-96 ◽  
Author(s):  
Robert A. Hayes ◽  
Lisa A. Efron ◽  
Gina S. Richman ◽  
Kelley A. Harrison ◽  
Elizabeth L. Aguilera
Keyword(s):  
Low Income ◽  
Economic Incentives ◽  
Future Research ◽  
Treatment Implementation ◽  
The Family ◽  
Appointment Keeping ◽  
Low Income Families ◽  
The Cost ◽  
Contingency Contract ◽  
Therapy Clinic

AbstractThe current study demonstrates the efficacy of using a behavioural contingency contract in conjunction with family-selected reinforcers to increase appointment keeping among low income families in a child and family therapy clinic. Three families with similar presenting problems participated. A multiple baseline across-subjects design with the addition of a reversal component was utilised. Upon treatment implementation, contracts were signed by family members stating that they would receive coupons valuing $30.00 after attending four consecutive clinic appointments. These coupons were selected by the family from a diverse menu. Results indicated increases in appointment keeping following implementation of the behavioural contract. The cost effectiveness of using a behavioural contract in conjunction with economic incentives with low-income families is discussed, and suggestions for future research on appointment keeping are made.

scholarly journals Affordability of Heathy, Equitable and More Sustainable Diets in Low-Income Households in Brisbane before and during the COVID-19 Pandemic

Nutrients ◽  
2021 ◽  
Vol 13 (12) ◽  
pp. 4386
Author(s):  
Amanda J. Lee ◽  
Dori Patay ◽  
Lisa-Maree Herron ◽  
Ru Chyi Tan ◽  
Evelyn Nicoll ◽  
...  
Keyword(s):  
Minimum Wage ◽  
Low Income ◽  
Household Income ◽  
Food Groups ◽  
Sustainable Diets ◽  
Cost Differential ◽  
Low Income Families ◽  
The Cost ◽  
The Impact ◽  
Low Income Households

The COVID-19 pandemic has increased food insecurity worldwide, yet there has been limited assessment of shifts in the cost and affordability of healthy, equitable and sustainable diets. This study explores the impact of the COVID-19 pandemic and income supplements provided by the Australian government on diet cost and affordability for low-income households in an Australian urban area. The Healthy Diets ASAP method protocol was applied to assess the cost and cost differential of current and recommended diets before (in 2019) and during the COVID-19 pandemic (late 2020) for households with a minimum-wage and welfare-only disposable household income, by area of socioeconomic disadvantage, in Greater Brisbane, Queensland, Australia. Data were collected between August and October, 2020, from 78 food outlets and compared with data collected in the same locations between May and October, 2019, in an earlier study. The price of most healthy food groups increased significantly during the pandemic—with the exception of vegetables and legumes, which decreased. Conversely, the price of discretionary foods and drinks did not increase during the pandemic. The cost of the current and recommended diets significantly increased throughout this period, but the latter continued to be less expensive than the former. Due to income supplements provided between May and September 2020, the affordability of the recommended diet improved greatly, by 27% and 42%, for households with minimum-wage and welfare-only disposable household income, respectively. This improvement in the affordability of the recommended diet highlights the need to permanently increase welfare support for low-income families to ensure food security.

scholarly journals Offsetting the cost of community-supported agriculture (CSA) for low-income families: perceptions and experiences of CSA farmers and members

2021 ◽  
pp. 1-11
Author(s):  
Stephanie B. Jilcott Pitts ◽  
Leah Connor Volpe ◽  
Marilyn Sitaker ◽  
Emily H. Belarmino ◽  
Amari Sealey ◽  
...  
Keyword(s):  
Low Income ◽  
Community Supported Agriculture ◽  
Future Research ◽  
Major Theme ◽  
Healthy Foods ◽  
Community Members ◽  
Cost Offset ◽  
Low Income Families ◽  
The Cost ◽  
Improve Access

Abstract Community-supported agriculture (CSA) is an alternative food marketing model in which community members subscribe to receive regular shares of a farm's harvest. Although CSA has the potential to improve access to fresh produce, certain features of CSA membership may prohibit low-income families from participating. A ‘cost-offset’ CSA (CO-CSA) model provides low-income families with purchasing support with the goal of making CSA more affordable. As a first step toward understanding the potential of CO-CSA to improve access to healthy foods among low-income households, we interviewed 24 CSA farmers and 20 full-pay CSA members about their experiences and perceptions of the cost-offset model and specific mechanisms for offsetting the cost of CSA. Audio recordings were transcribed verbatim and coded using a thematic approach. Ensuring that healthy food was accessible to everyone, regardless of income level, was a major theme expressed by both farmers and members. In general, CSA farmers and CSA members favored member donations over other mechanisms for funding the CO-CSA. The potential time burden that could affect CSA farmers when administering a cost-offset was a commonly-mentioned barrier. Future research should investigate various CO-CSA operational models in order to determine which models are most economically viable and sustainable.

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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