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.

‘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.

scholarly journals Are There Treatment Duration Differences in the Seattle and Denver Income Maintenance Experiments?

2007 ◽  
Vol 7 (1) ◽  
Author(s):  
Melvin Stephens
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Job Training ◽  
Estimated Parameters ◽  
Negative Income ◽  
Income Maintenance ◽  
Supply Model ◽  
Standard Life ◽  
Negative Income Tax ◽  
And Control

Abstract This paper re-examines the labor supply responses in the Seattle and Denver Income Maintenance Experiments (SIME/DIME). Specifically, the original experimental results show a significantly larger labor supply response for men and women from dual-headed households in the five-year Negative Income Tax (NIT) treatment relative to those in the three-year NIT treatment. Although typically thought of only as an NIT experiment, the SIME/DIME also included a job training experiment that enrolled roughly 60 percent of households, including both NIT treatment and control households. The original empirical specification imposed strong assumptions on the treatment response to the job training experiment in order to increase the precision of the estimated parameters. Once these assumptions are relaxed, the labor supply differences between men in the three- and five-year NIT treatments fall by over 50 percent in magnitude and become statistically insignificant. The analogous differences for women are almost entirely explained by these specification changes. Whereas the original findings of the SIME/DIME were inconsistent with the standard life-cycle labor supply model, the results of the re-analysis are mostly consistent with the model.

scholarly journals Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence

2010 ◽  
Vol 2 (1) ◽  
pp. 177-208 ◽  
Author(s):  
Jesse Rothstein
Keyword(s):  
Labor Supply ◽  
Single Mothers ◽  
Low Income ◽  
Income Tax ◽  
Cash Transfers ◽  
Conditional Cash Transfers ◽  
Tax Incidence ◽  
Negative Income ◽  
Negative Income Tax

The EITC is intended to encourage work. But EITC-induced increases in labor supply may drive wages down. I simulate the economic incidence of the EITC. In each scenario that I consider, a large portion of low-income single mothers' EITC payments is captured by employers through reduced wages. Workers who are EITC ineligible also see wage declines. By contrast, a traditional Negative Income Tax (NIT) discourages work, and so induces large transfers from employers to their workers. With my preferred parameters, $1 in EITC spending increases after-tax incomes by $0.73, while $1 spent on the NIT yields $1.39. (JEL H22, H23, H24, H31, J22)

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.

Monitoring the Impact of Family Health Benefits for Low-Income Families

2001 ◽  
Author(s):  
Trish Livingstone ◽  
Lisa Lix ◽  
Mary McNutt ◽  
Evan Morris ◽  
William Osei ◽  
...  
Keyword(s):  
Low Income ◽  
Health Benefits ◽  
Family Health ◽  
Low Income Families ◽  
The Impact

scholarly journals “You run out of hope:” An Exploration of Low-Income Parents’ Experiences with Food Insecurity using Photovoice

2021 ◽  
pp. 1-21
Author(s):  
Payge Lindow ◽  
Irene H. Yen ◽  
Mingyu Xiao ◽  
Cindy W. Leung
Keyword(s):  
Food Insecurity ◽  
San Francisco ◽  
Low Income ◽  
Eating Behaviors ◽  
Comparative Method ◽  
Well Being ◽  
Structured Interviews ◽  
Unhealthy Eating ◽  
Low Income Families ◽  
The Impact

ABSTRACT Objective: Using an adaption of the Photovoice method, this study explored how food insecurity affected parents’ ability to provide food for their family, their strategies for managing household food insecurity, and the impact of food insecurity on their well-being. Design: Parents submitted photos around their families’ experiences with food insecurity. Afterwards, they completed in-depth, semi-structured interviews about their photos. The interviews were transcribed and analyzed for thematic content using the constant comparative method. Setting: San Francisco Bay Area, California, USA. Subjects: 17 parents (14 mothers and 3 fathers) were recruited from a broader qualitative study on understanding the experiences of food insecurity in low-income families. Results: Four themes were identified from the parents’ photos and interviews. First, parents described multiple aspects of their food environment that promoted unhealthy eating behaviors. Second, parents shared strategies they employed to acquire food with limited resources. Third, parents expressed feelings of shame, guilt, and distress resulting from their experience of food insecurity. And finally, parents described treating their children to special foods to cultivate a sense of normalcy. Conclusions: Parents highlighted the external contributors and internal struggles of their experiences of food insecurity. Additional research to understand the experiences of the food-insecure families may help to improve nutrition interventions targeting this structurally vulnerable population.

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