TITLE

Basic Income and Negative Income Tax: A Comparison with a Simulation Model

AUTHOR(S)
Honkanen, Pertti
PUB. DATE
December 2014
SOURCE
Basic Income Studies;Dec2014, Vol. 9 Issue 1/2, p119
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
An explicit unconditional basic income linked with a proportional tax rate and corresponding negative income tax schedule are generally thought to produce an equal distribution of incomes. They are so to say mathematically uniform systems. If we try to implement these schedules on an existing system of social transfers and taxes, the results may nevertheless be different. One problem is that taxes are generally calculated on yearly basis but social transfers are paid on monthly or even daily basis. There can be also other differences in the implementation. In this paper a simulation experiment with the Finnish tax and transfer system is presented. Two levels of basic income are defined: a normal basic income for adults over 18 years and a bit higher basic income (basic pension) for pensioners. Two alternative simulations are made: one corresponding to an unconditional basic income model and the other corresponding to the idea of negative income tax. Then the distributional effects and various transfer and income flows are studied.
ACCESSION #
100522489

 

Related Articles

  • ŁĄCZNE OPODATKOWANIA DOCHODÓW MAŁŻONKÓW - PREFERENCJA PODATKOWA WSPIERAJÄ„CA RODZINĘ. Misiewicz, Elżbieta Izabela // Research Papers of the Wroclaw University of Economics / Prace N;2014, Issue 348, p220 

    Joint taxation of spouses is one of the tax allowances existing in Polish tax system under the rules of Income Tax Act of 26 July 1991. The principle of filing taxes jointly by relatives was in force already in the interwar period. It was also maintained after the Second World War, but it...

  • Miért is olyan félelmetes a társadalmak számára az, ha az emberek tovább élnek? Balázs, Krémer // Szociologiai Szemle;2013, Vol. 23 Issue 3, p51 

    2012 was the International Year of Ageing, and on this occasion several sociological and social policy studies were published on the issue of ageing, with special regards to the two major public schemes on ageing, pension systems and Long-Term Care. In Hungary ageing did not become a leading...

  • Optimal taxes and pensions with myopic agents. Roeder, Kerstin // Social Choice & Welfare;Mar2014, Vol. 42 Issue 3, p597 

    So far the economic literature has concentrated on analyzing the income tax and pension scheme in isolation. The present paper asks how both transfer schemes should be optimally designed in a society where individuals differ in productivity and rationality. Rational agents (if not liquidity...

  • Relations between Procedural Fairness, Tax Morale, Institutional Trust and Tax Evasion. NIESIOBĘDZKA, MAŁGORZATA // Journal of Social Research & Policy;Jul2014, Vol. 5 Issue 1, p41 

    The slippery slope model of forced or voluntary tax compliance might be seen as a reflection of the relationships between taxpayers and the tax authorities. Tax compliance depends on two dimensions: power of tax authorities and trust in the tax authorities (Kirchler, 2007). Trust in the...

  • The asset portfolios of older Australian households. Cobb-Clark, Deborah A.; Hildebrand, Vincent A. // Australian Social Policy Journal;2010, Vol. 9, p1 

    This paper investigates whether there is evidence that households adjust their asset portfolios just prior to retirement in order to maximise their eligibility for a means-tested public pension. To this end, we take advantage of recently available, detailed micro data for a...

  • "I Know what I Like": Parallel Tastes in Fine Art Consumption. Stankovic, Tajana; Tonner, Andrea; Wilson, Alan // Advances in Consumer Research;2016, Vol. 44, p343 

    This paper explores taste through practices in online and offline fine art consumption. Through online communities art expertise has become democratised beyond established institutions but online art communities represent distinct and parallel practices tastes and cultural capital. Online...

  • Kuznets's inverted-U hypothesis: Comment. Fosu, Augustin Kwasi // Southern Economic Journal;Jan93, Vol. 59 Issue 3, p523 

    Comments on Rati Ram's contradiction to Kuznets's inverted-U hypothesis associated with income inequality. Time-series evidence and results against the Kuznets hypothesis; Role of family composition.

  • Kuznets's inverted-U hypothesis: Reply. Ram, Rati // Southern Economic Journal;Jan93, Vol. 59 Issue 3, p528 

    Responds to the comment of Augustin Kwasi Fosu on Kuznets's inverted-U hypothesis. Answers the three points raised opposing Rama's paper; Autocorrelation of the error terms; Collinearity between the logarithmic income and the income-square terms; Addition of a family-composition variable.

  • Introduction: Income Inequality, Social Exclusion and Redistribution. OSAWA, Mari // Social Science Japan Journal;Summer2010, Vol. 13 Issue 1, p1 

    An introduction is presented to the articles in this issue dealing with income distribution and inequality in Japan, including a review of the book "Japanese Work Places in Transition: Employee Perspectives," "From Seniority to Performance Principles: The Evolution of Pay Practices at Japanese...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics