Can a Negative Income Tax System for the United Kingdom be Both Equitable and Affordable?

2017 ◽  
pp. 293-316
Author(s):  
Randall Bartlett ◽  
James Davies ◽  
Michael Hoy
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Tax System ◽  
The United Kingdom ◽  
Negative Income ◽  
Negative Income Tax

scholarly journals How Progressive is the U.S. Federal Tax System? A Historical and International Perspective

2007 ◽  
Vol 21 (1) ◽  
pp. 3-24 ◽  
Author(s):  
Thomas Piketty ◽  
Emmanuel Saez
Keyword(s):  
United States ◽  
United Kingdom ◽  
Income Tax ◽  
The United States ◽  
Tax Rates ◽  
Tax System ◽  
Tax Progressivity ◽  
The United Kingdom ◽  
Income Groups ◽  
The U.S

This paper provides estimates of federal tax rates by income groups in the United States since 1960, with special emphasis on very top income groups. We include individual and corporate income taxes, payroll taxes, and estate and gift taxes. The progressivity of the U.S. federal tax system at the top of the income distribution has declined dramatically since the 1960s. This dramatic drop in progressivity is due primarily to a drop in corporate taxes and in estate and gift taxes combined with a sharp change in the composition of top incomes away from capital income and toward labor income. The sharp drop in statutory top marginal individual income tax rates has contributed only moderately to the decline in tax progressivity. International comparisons confirm that is it critical to take into account other taxes than the individual income tax to properly assess the extent of overall tax progressivity, both for time trends and for cross-country comparisons. The pattern for the United Kingdom is similar to the U.S. pattern. France had less progressive taxes than the United States or the United Kingdom in 1970 but has experienced an increase in tax progressivity and has now a more progressive tax system than the United States or the United Kingdom.

Income Tax, Wage Tax, and Optimal Tax

1976 ◽  
Vol 4 (1) ◽  
pp. 3-15
Author(s):  
Eitan Berglas
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
High Income ◽  
Tax System ◽  
Wage Subsidies ◽  
Optimal Tax ◽  
Negative Income ◽  
Aggregation Problem ◽  
Wage Tax ◽  
Negative Income Tax

Recent studies find wage subsidies (WS) to be superior to negative income tax (NIT). However, these studies suffer from a serious aggregation problem. A model is suggested in which these aggregation problems are avoided. In this model there exists a WS schedule that increases labor supply compared with an equally costly NIT. However, the WS may be Pareto inferior. Furthermore, for high income workers given any income tax system it is always possible to find a wage tax system which both is Pareto superior and increases labor supply. The merits of the model and its implications for other optimal income tax studies are critically discussed.

An Agent-Based Simulation Model of the Economy: An Empirical Study of Negative Income Tax System in a Transition Economy

2011 ◽  
Vol 204-210 ◽  
pp. 718-723
Author(s):  
Xiang Yu Wan ◽  
Peng Jia
Keyword(s):  
Economic Growth ◽  
Simulation Model ◽  
Income Tax ◽  
Transition Economy ◽  
Computer Simulation Model ◽  
Tax System ◽  
Income Difference ◽  
Agent Based ◽  
Negative Income ◽  
Negative Income Tax

In this paper, we present an agent-based computer simulation model to analyze the dynamic relationship between economic growth and income difference in a transition economy and to evaluate the empirical effects of negative income tax system. Micro agents in the economy form the economic networks and enable the economy to evolve forward through the intelligential evolutionary system and mutual interactions between the agents. Based on the logical reasons of the transition economy, the model finally gives the results of the simulation: when the economy finishes rapid transition and enters into stable development, by implementing negative income tax system, government can effectively decrease income difference while at the same time maintain rapid economic growth.

Towards a Negative Income Tax System for Australia

1998 ◽  
Vol 31 (3) ◽  
pp. 237-257 ◽  
Author(s):  
Peter Dawkins ◽  
David Johnson ◽  
Rosanna Scutella ◽  
Gillian Beer ◽  
Ann Harding
Keyword(s):  
Income Tax ◽  
Tax System ◽  
Negative Income ◽  
Negative Income Tax

scholarly journals Simplicity in Legislative Drafting and Rewriting Tax Legislation

2012 ◽  
Vol 43 (3) ◽  
pp. 517 ◽  
Author(s):  
Ivor Richardson
Keyword(s):  
United Kingdom ◽  
New Zealand ◽  
Income Tax ◽  
Common Law ◽  
Tax System ◽  
Tax Legislation ◽  
The United Kingdom ◽  
Law Commission

The search for simplicity in legislative drafting affects all legislatures. It is also central to the work of the New Zealand Law Commission and of governments in other comparable jurisdictions. Rather than exploring a range of statutes in various jurisdictions, this article focuses on income tax. It does so for two reasons. The first is that income tax has been crucial to the funding of government in common law jurisdictions and to achieving a legislative balance between simplicity and other criteria of an acceptable tax system. The second is that we can draw on three recent projects to rewrite income tax legislation – in Australia, the United Kingdom and New Zealand.

Differentiation of Skills and Unemployment

2016 ◽  
pp. 355-365
Author(s):  
Samir Amine
Keyword(s):  
Public Policy ◽  
Labor Market ◽  
Income Tax ◽  
Present Model ◽  
Vertical Differentiation ◽  
Skilled Workers ◽  
Tax System ◽  
Negative Income ◽  
Unskilled Workers ◽  
Negative Income Tax

The purpose of this paper is to study an original relationship between the differentiation of jobs and the characteristics of the labor market. Using an original formalization of horizontal and vertical differentiation of workers, this paper shows that an increase in unemployment leads to creating jobs more suited to skilled workers. Introducing a negative income tax system (NIT), the present model shows that this public policy results in a deterioration of the situation of unskilled workers by encouraging firms to create jobs more suited to skilled.

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