Friday, November 26, 2010

A Negative Income Tax: "A Minimum Level Of Income For All"

"A negative income tax is intended to create a single system that would not only pay for government, but would also fulfil the social goal of making sure that there was a minimum level of income for all. It is theorized that, with an NIT, the need for minimum wage, food stamps, welfare, social security programs and other government assistance programs could be eliminated, thus reducing the administrative effort and cost to a fraction of what it is under the current system, as well as eliminating the perverse incentives created by these overlapping aid programs..." http://en.wikipedia.org/wiki/Negative_income_tax

If it was guaranteed it would reduce the incentive to work in inflexible jobs and increase the incentive to work for one's self at what one is good at and what one sees as required.

It would also incentivise organisations to make the work that members do for them flexible and attractive.

B

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