Summary:
Excerpted from Fallacies of the Negative Income Tax. Published in Man vs. the Welfare State. Reprinted from Mises.org Recognizing the calamitous erosion of incentives that would be brought about by a straight guaranteed-income plan, some reformers have advocated what they call a “negative income tax.” This proposal was put forward by the prominent economist, Professor Milton Friedman, of the University of Chicago, in his book Capitalism and Freedom, which appeared in 1962. The system he proposed would be administered along with the current income tax system. Suppose that the poverty-line income were set at ,000 per “consumer […]
Full Post at austrian.economicblogs.org