Tuesday, February 15, 2011

Basic Income: And You'll Be Better Off Working For More Too

"…if one makes the mild assumption that the explicit tax rate applying to the lowest income brackets must remain noticeably lower than 100%, then the following statement holds. Since you can keep the full amount of your basic income, whether working or not, whether rich or poor, you are bound to be better off when working than out of work."
Philippe Van Parijs, 2000, Basic Income: A Simple and Powerful Idea for the 21st Century., Redesigning Distribution., p12.

The main work disincentive from a benefit is losing it when you start work. You don't lose the base income.

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