Universal Basic Income and Negative Income Tax: Two Different Ways of Thinking Redistribution

Davide, Tondani (2008): Universal Basic Income and Negative Income Tax: Two Different Ways of Thinking Redistribution.

Abstract

This article examines two redistributive policies: Negative Income Tax and Universal Basic Income. Its aim is to show that, although the two achieve the same distributive outcome through an appropriate tax-benefit system, they are fundamentally different from economic and ethical points of view. The approach integrates positive and normative analysis and explicit attention to ethical issues provides a more complete description of economic aspects. We show that Negative Income Tax scheme is coherent with the libertarian idea of distributive justice, while Basic Income follows egalitarian thought.

• Item Type: MPRA Paper
• Institution: University of Parma - Department of Law, Economics and International Finance
• Language: English
• Keywords: Basic Income; Negative Income Tax; Redistribution; Distributive Justice
• Subjects: D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; H - Public Economics > H5 - National Government Expenditures and Related Policies > H53 - Government Expenditures and Welfare Programs; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies

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