Negative Income Tax is Not Cheaper Than Universal Basic Income, Nor is Guaranteed Income ‘More Progressive’ by Excluding the Rich

Negative Income Tax is Not Cheaper Than Universal Basic Income, Nor is Guaranteed Income 'More Progressive' by Excluding the Rich

Many people don’t know this, but Milton Friedman was once asked in the Spring of 2000 what he thought about a universal basic income (UBI) in comparison to his proposed negative income tax (NIT) and this was his response:

"A basic or citizen’s income is not an alternative to a negative income tax. It is simply another way to introduce a negative income tax if it is accompanied with a positive income tax with no exemption. A basic income of a thousand units with a 20% rate on earned income is equivalent to a negative income tax with an […]

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