anton@ucbvax.ARPA (Jeff Anton) (02/21/85)
go * I seem to remember something about a "Negative income tax" proposed * by Milton Freedman. (sorry about the spelling) The system is probably * politically impossible to implement, but I'd like to hear some discussion * on it or at least let people know about it. * * Once taxable income is established, in a much simalar way as the current * system, a flat percentage is assessed. That would be how much tax * you pay except that you get some refund based on how many dependents * you support and simalar things. This refund would not be limited * to the percentage tax assessed from income. Thus, low income * people would actually be paid by the government. This system could * encompass the existing Social Security scheame. Of course, to * accept this at all we must accept that we as redistributing wealth. * * income tax final tax * 0 \----| -2000 ------------- * 2000 \---| II * 4000 \--| II * 6000 \-| II * 8000 \| II * 10000 | 0 II Cancels * 12000 |\ II * 14000 |+\ II * 16000 |++\ II * 18000 |+++\ II * 20000 |++++\ 2000 -------------- * 22000 |+++++\ v Government operation * * I don't really want to think about the number as much as the implications. * By having a tax like this if the tax rate were 30% you would never * really pay 30%. (But you could come close (asymtotic?)) * * What do you think? * \g /* Bonus question: What net groups do I normally post to? */ -- _________________________ C knows no bounds. Jeff Anton U.C.Berkeley ucbvax!anton anton@berkeley.ARPA