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I think this is the sensible implementation of the basic income. You get basic payment and then you can get rid of not just many benefits but also tax allowanc
by josephlord 13y ago
I think this is the sensible implementation of the basic income. You get basic payment and then you can get rid of not just many benefits but also tax allowances and thresholds and pay a flat rate on all earned income.
This would eliminate further the cliffs/incentive changes with the basic income payment added to the tax the actual effect would be pretty progressive while everyone (who earns anything above the basic) would feel they are contributing.
What I have never done is really make an attempt to calculate the necessary rate of tax to support a useful basic income. I suspect it would be quite high.