Negative Income Tax

Mario007

Hey has anyone heard of the Negative Income Tax? I came across it about a month ago on wikipedia and it is a very interesting concept, which pretty much gets rid off progressive taxation as such and also of social welfare payments.
Does anyone know where i could find more information about it besides wiki or do you know anything more about this tax system?

Permabear

This post has been deleted.

Mario007

donegalfella wrote: »

This post has been deleted.

would you think so? i like the idea, when you put it with a flat rate of tax and scrap all social welfare payments. you give people stimulus to work, can abandon the minimum wage and stop disorting the market. when NIT was to enter the law system in the us the only bad thing was that the system was meant to completely change into NIT to fully work, while the only introduces parts of it and never looked at scrapping welfare.

Daftendirekt

I found a link to this somewhere on Boards. It seems like a workable idea, but I don't know too much about it myself.

ei.sdraob

Yah I remember above link being discussed in economics forum, quite interesting

Daftendirekt

For a system like this to work, would you need to have a very high tax rate on high income earners?

ei.sdraob

Daftendirekt wrote: »

For a system like this to work, would you need to have a very high tax rate on high income earners?

no more or less the same

read the link

basically it replaces welfare on the lower end

Mario007

Daftendirekt wrote: »

I found a link to this somewhere on Boards. It seems like a workable idea, but I don't know too much about it myself.

thanks for that i'll have a read through it

Mario007

Daftendirekt wrote: »

For a system like this to work, would you need to have a very high tax rate on high income earners?

as ei.sdraob has pointed out no it wouldnt actually mean higher taxes i would see it work with a flat rate actually, basically all the money for the NIT paid back would be take from the social welfare bill but would avoid the welfare trap, as i understand it

turgon

So in this system you dont even have to be seeking employment to get 10k a year?

Mario007

turgon wrote: »

So in this system you dont even have to be seeking employment to get 10k a year?

not at all, when i say it gets rid off social welfare i am really talking about the bonuses you get...but as i said thats just my reading it and i'm still waiting for friedman's book to come to my library that i ordered last week

ei.sdraob

turgon wrote: »

So in this system you dont even have to be seeking employment to get 10k a year?

as opposed to getting 16k a year or more sitting on the dole now "seeking" employment, oh and free healthcare

alot of people sat their way thru the best years in this manner, and it wasnt lack of jobs...

ei.sdraob

oh i found the original thread

http://www.boards.ie/vbulletin/showthread.php?t=2055537273

started by the author himself

Mario007

ei.sdraob wrote: »

oh i found the original thread

http://www.boards.ie/vbulletin/showthread.php?t=2055537273

started by the author himself

cool thanks for that!