4 ms·

NIT is not UBI, they are different concepts. UBI must go to -everyone-, NIT only kicks in below a certain income threshold and is more and more progressive, in

NIT is not UBI, they are different concepts. UBI must go to -everyone-, NIT only kicks in below a certain income threshold and is more and more progressive, in terms of payout, as the income level falls to 0. Decreasing bureaucratic and administrative costs is one of the core tenets of NIT, it's meant to replace current welfare programs entirely and streamline everything, it wasn't dreamed up to supplement existing programs.

notahacker 3y ago
A UBI funded by income tax and a NIT are entirely equivalent in outcomes. The NIT "prebate" is universal and an income: paid directly to people whose income taxes are low/zero and a credit against the tax bill of those whose income tax bill comes to more than the "prebate" in income tax And decreasing bureaucratic costs whilst increasing total programme spend by at least two orders of magnitude more (or slashing all current benefit recipients' incomes to below subsistence levels) is a ridiculous priority.
- partiallypro 3y ago
  > A UBI funded by income tax and a NIT are entirely equivalent in outcomes. This is just simply not true. NIT still has work incentivizes, UBI does not. UBI is also much more expensive and could have less inflationary effects. They are not the same. The Wikipedia article even had an entire section devoted to this. > And decreasing bureaucratic costs whilst increasing total programme spend by at least two orders of magnitude more (or slashing all current benefit recipients' incomes to below subsistence levels) is a ridiculous priority. It's not a "priority" it's one of the tenets of the proposal. NIT could actually be cheaper than traditional welfare programs and wasn't intended to be supplemental policy, but a replacement.
  - notahacker 3y ago
    The Wikipedia article also acknowledges that Friedman's NIT is equivalent in operation to a UBI [funded by income tax]. A UBI can theoretically be funded in ways other than income tax, and in theory the payment timing can be different, but the net effect of an NIT and an equivalent size income tax funded UBI on a government budget is identical (The fact the same page contains incorrect arguments about differences illustrates why Wikipedia is not a good place to learn anything about economics...) Neither have "work incentives". Both provide a modest work disincentive firstly by reducing an individuals' need for income, and secondly by increasing the tax burden on earned income (in the case of the UBI this work disincentive might be less if the payments were funded by something other than income tax, though this is unlikely). NIT can only be "cheaper than existing programs" if the majority of current program recipients receive considerably less money than they currently do (in order to pay for NIT "prebates" paid out to the large number of people who are not entitled to existing welfare payments but dont pay much or any income tax either). In many cases, this would leave them homeless. As I said, a questionable priority.

notahacker 3y ago

A UBI funded by income tax and a NIT are entirely equivalent in outcomes. The NIT "prebate" is universal and an income: paid directly to people whose income taxes are low/zero and a credit against the tax bill of those whose income tax bill comes to more than the "prebate" in income tax And decreasing bureaucratic costs whilst increasing total programme spend by at least two orders of magnitude more (or slashing all current benefit recipients' incomes to below subsistence levels) is a ridiculous priority.

partiallypro 3y ago
> A UBI funded by income tax and a NIT are entirely equivalent in outcomes. This is just simply not true. NIT still has work incentivizes, UBI does not. UBI is also much more expensive and could have less inflationary effects. They are not the same. The Wikipedia article even had an entire section devoted to this. > And decreasing bureaucratic costs whilst increasing total programme spend by at least two orders of magnitude more (or slashing all current benefit recipients' incomes to below subsistence levels) is a ridiculous priority. It's not a "priority" it's one of the tenets of the proposal. NIT could actually be cheaper than traditional welfare programs and wasn't intended to be supplemental policy, but a replacement.
- notahacker 3y ago
  The Wikipedia article also acknowledges that Friedman's NIT is equivalent in operation to a UBI [funded by income tax]. A UBI can theoretically be funded in ways other than income tax, and in theory the payment timing can be different, but the net effect of an NIT and an equivalent size income tax funded UBI on a government budget is identical (The fact the same page contains incorrect arguments about differences illustrates why Wikipedia is not a good place to learn anything about economics...) Neither have "work incentives". Both provide a modest work disincentive firstly by reducing an individuals' need for income, and secondly by increasing the tax burden on earned income (in the case of the UBI this work disincentive might be less if the payments were funded by something other than income tax, though this is unlikely). NIT can only be "cheaper than existing programs" if the majority of current program recipients receive considerably less money than they currently do (in order to pay for NIT "prebates" paid out to the large number of people who are not entitled to existing welfare payments but dont pay much or any income tax either). In many cases, this would leave them homeless. As I said, a questionable priority.