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Universal Basic Income and Negative Income Tax: Two different ways of thinking redistribution

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  • Tondani, Davide

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.

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  • Tondani, Davide, 2009. "Universal Basic Income and Negative Income Tax: Two different ways of thinking redistribution," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 246-255, March.
    • Handle: RePEc:eee:soceco:v:38:y:2009:i:2:p:246-255
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    1. Blum, Bianca & Franke, Marcel & Malmberg, Elina & Neumärker, Bernhard & Weinel, Jette, 2023. "The New Ordoliberalism: A case for UBI?," The Constitutional Economics Network Working Papers 01-2023, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.
    2. Mery Ferrando & Cristian Pérez Muñoz & Gonzalo Salas, 2013. "Impuestos negativos a la renta en Uruguay: ¿una política redistributiva alternativa?," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, January.
    3. Zaineb Majoka & Robert Palacios, 2019. "Targeting versus Universality," World Bank Publications - Reports 32789, The World Bank Group.
    4. Siameh, Celestine O., 2020. "Universal Basic Income, Targeted Cash Transfers, and Progressive Taxation: Reducing Income Inequality in South Africa," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304571, Agricultural and Applied Economics Association.
    5. Smith-Carrier Tracy A & Green Steven, 2017. "Another Low Road to Basic Income? Mapping a Pragmatic Model for Adopting a Basic Income in Canada," Basic Income Studies, De Gruyter, vol. 12(2), pages 1-21, December.
    6. Jiaqi Yang & Geetha Mohan & Supriya Pipil & Kensuke Fukushi, 2021. "Review on basic income (BI): its theories and empirical cases," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(2), pages 203-239, December.
    7. Gearoid Millar, 2021. "Ambition and ambivalence: Reconsidering positive peace as a trans-scalar peace system," Journal of Peace Research, Peace Research Institute Oslo, vol. 58(4), pages 640-654, July.
    8. Tsion Berie & Sean A. Kidd & Gregor Wolbring, 2024. "Poverty (Number 1 Goal of the SDG) of Disabled People through Disability Studies and Ability Studies Lenses: A Scoping Review," Sustainability, MDPI, vol. 16(13), pages 1-52, July.
    9. Kederer, Jan-Felix & Klein, Adelheid & Kovarich, Daniel & Kumm, Lena, 2017. "Social justice in the context of redistribution," The Constitutional Economics Network Working Papers 01-2017, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.
    10. Alari Paulus, 2016. "The antipoverty performance of universal and means-tested benefits with costly take-up," ImPRovE Working Papers 16/12, Herman Deleeck Centre for Social Policy, University of Antwerp.
    11. Leopold, Franziska & Blum, Bianca & Walter, Larissa, 2023. "Tax-financed Basic Income – Comparison between three financing schemes and their normative implications," FRIBIS Policy Debate April 11, 2023, University of Freiburg, Freiburg Institute for Basic Income Studies (FRIBIS).
    12. Palermo Kuss Ana Helena & Neumärker K. J. Bernhard, 2018. "Modelling the Time Allocation Effects of Basic Income," Basic Income Studies, De Gruyter, vol. 13(2), pages 1-15, December.

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