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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 way
by 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.