Politics, Economics and Welfare Reform: The Failure of the Negative Income Tax in Britain and the United States.

ILR Review ◽  
1988 ◽  
Vol 41 (3) ◽  
pp. 486
Author(s):  
Bruno Stein ◽  
Leslie Lenkowsky
Keyword(s):  
United States ◽  
Welfare Reform ◽  
Income Tax ◽  
The United States ◽  
Negative Income ◽  
Negative Income Tax

Welfare Reform and the Negative Income Tax

1980 ◽  
Vol 32 (2) ◽  
pp. 453
Author(s):  
Walter Nicholson ◽  
Martin Anderson
Keyword(s):  
Welfare Reform ◽  
Income Tax ◽  
Negative Income ◽  
Negative Income Tax

Negative Income Tax Comes to Britain, 1955–1970

2019 ◽  
pp. 95-124
Author(s):  
Peter Sloman
Keyword(s):  
Income Tax ◽  
The United States ◽  
Cultural Resistance ◽  
Means Testing ◽  
Negative Income ◽  
Working Families ◽  
1960S And 1970S ◽  
The 1960S ◽  
Families With Children ◽  
Negative Income Tax

The 1960s witnessed a revival of concern about poverty on both sides of the Atlantic. One of the most fashionable responses to this ‘rediscovery of poverty’ in the United States was the concept of a Negative Income Tax, which Milton Friedman popularized in Capitalism and Freedom (1962). Much of the literature on the US guaranteed income debate presents NIT as a distinctively American phenomenon, but the possibility of integrating tax and benefits in this way was also central to British social policy during the 1960s and 1970s. Both Conservative and Labour governments hoped that NIT could allow them to target benefits on the poor without the stigma of conventional means-testing—focusing first on pensioners, then on working families with children. The idea attracted wide attention inside and outside government, but ran up against both cultural resistance to wage supplements and technical difficulties in paying benefits through the PAYE system.

Optimal Income Taxation with Unemployment and Wage Responses: A Sufficient Statistics Approach

2020 ◽  
Vol 12 (1) ◽  
pp. 254-292 ◽  
Author(s):  
Kory Kroft ◽  
Kavan Kucko ◽  
Etienne Lehmann ◽  
Johannes Schmieder
Keyword(s):  
Income Tax ◽  
The United States ◽  
Income Taxation ◽  
Optimal Income Taxation ◽  
Sufficient Statistics ◽  
Earned Income ◽  
Tax Progressivity ◽  
Negative Income ◽  
Policy Variation ◽  
Negative Income Tax

We derive a sufficient statistics tax formula in a model that incorporates unemployment and endogenous wages to study the shape of the optimal income tax. Key sufficient statistics are the macro employment response to taxation, the micro and macro participation response to taxation, and the wage-moderating effect of tax progressivity. We empirically implement the tax formula by estimating the micro and macro elasticities using policy variation from the United States. Our results suggest that the optimal tax more closely resembles a negative income tax than an earned income tax credit relative to the case where unemployment and wage responses are ignored. (JEL E24, H21, H23, H24, H31, J22, J31)

Welfare Reform and the Labor Market

2018 ◽  
Vol 10 (1) ◽  
pp. 347-381 ◽  
Author(s):  
Marc K. Chan ◽  
Robert Moffitt
Keyword(s):  
Human Capital ◽  
Welfare Reform ◽  
Income Tax ◽  
Theoretical Models ◽  
Empirical Literature ◽  
Negative Income ◽  
Different Types ◽  
Supply Model ◽  
Negative Income Tax ◽  
Welfare Reforms

This article reviews the basic theoretical models that are appropriate for analyzing different types of welfare reforms, as well as the related empirical literature. We first present the canonical labor supply model of a classical welfare program and then extend this basic framework to include in-kind transfers, incomplete take-up, human capital, preference persistence, and borrowing and saving. The empirical literature on these models is presented. The negative income tax, earnings subsidies, US welfare reforms with features that differ from those in other countries, and childcare reforms are then surveyed in terms of both the theoretical models and the empirical literature surrounding each.

THE NEGATIVE INCOME TAX AND THE SUPPLY OF WORK EFFORT

1967 ◽  
Vol 20 (4) ◽  
pp. 353-367
Author(s):  
MICHAEL JAY BOSKIN
Keyword(s):  
Income Tax ◽  
Work Effort ◽  
Negative Income ◽  
Negative Income Tax

scholarly journals A Negative-Income-Tax Experiment

1972 ◽  
Vol 227 (4) ◽  
pp. 19-25 ◽  
Author(s):  
David N. Kershaw
Keyword(s):  
Income Tax ◽  
Negative Income ◽  
Negative Income Tax
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