4 ms·
I agree that it would be much better and fairer to have a negative income tax as the only form of social support. One of the worst things about the current soc
by narrator 11y ago
I agree that it would be much better and fairer to have a negative income tax as the only form of social support. One of the worst things about the current social support system in the U.S is the welfare cliffs. There's a gap between $25,000 a year and $80,000 a year where there's a greater than 100% marginal income tax because people lose access to benefits at these income levels. This chart displays it very nicely:
http://www.zerohedge.com/sites/default/files/images/user92183/imageroot/2015/07/WelfareState1.png http://www.zerohedge.com/sites/default/files/images/user9218...
The full study examining this phenomenon is here: http://www.scribd.com/doc/273843288/Welfare-Report-Final http://www.scribd.com/doc/273843288/Welfare-Report-Final
- RivieraKid 11y agoI think that NIC could be some sort of a base system with a set of modifications to handle various corner cases (people with disabilities etc.). Yes, the cliff is definitely a problem with the current system.