IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/2052.html
   My bibliography  Save this paper

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

Author

Listed:
  • Davide, Tondani

Abstract

This article examines two redistributive programs: Negative Income Tax and Universal Basic Income. Its aim is to show that, even if the two programs – through the implementation of an appropriate tax-benefit system – can get the same distributive outcome, they are deeply different both from an economic point of view and an ethic perspective. The approach adopted integrates positive and normative analysis so that an explicit attention to ethical issues can provide a more complete descriptive economics. We show that Negative Income Tax scheme is consistent with the libertarian idea of distributive justice, while Basic Income matches with the egalitarian thought.

Suggested Citation

  • Davide, Tondani, 2007. "Universal Basic Income and Negative Income Tax: Two Different Ways of Thinking Redistribution," MPRA Paper 2052, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:2052
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/2052/1/MPRA_paper_2052.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/7016/1/MPRA_paper_7016.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Denis Maguain, 2002. "Les théories de la justice distributive post-rawlsiennes. Une revue de la littérature," Revue Économique, Programme National Persée, vol. 53(2), pages 165-199.
    2. A. J. Auerbach & M. Feldstein (ed.), 2002. "Handbook of Public Economics," Handbook of Public Economics, Elsevier, edition 1, volume 4, number 4.
    3. A. J. Auerbach & M. Feldstein (ed.), 2002. "Handbook of Public Economics," Handbook of Public Economics, Elsevier, edition 1, volume 3, number 3.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Zaineb Majoka & Robert Palacios, 2019. "Targeting versus Universality," World Bank Publications - Reports 32789, The World Bank Group.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tran, Chung & Wende, Sebastian, 2021. "On the marginal excess burden of taxation in an overlapping generations model," Journal of Macroeconomics, Elsevier, vol. 70(C).
    2. Lapo Filistrucchi & Fatih Cemil Ozbugday, 2012. "Mandatory Quality Disclosure and Quality Supply: Evidence from German Hospitals," Working Papers - Economics wp2012_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    3. Nikolov, Plamen & Adelman, Alan, 2019. "Do private household transfers to the elderly respond to public pension benefits? Evidence from rural China," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    4. Desai, Mihir A. & Hines, James R. Jr., 2002. "Expectations and Expatriations: Tracing the Causes and Consequences of Corporate Inversions," National Tax Journal, National Tax Association;National Tax Journal, vol. 55(3), pages 409-440, September.
    5. Magda Iga & Kiełczewska Aneta & Brandt Nicola, 2020. "The effect of child benefit on female labor supply," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-18, March.
    6. Jean-Pierre Laffargue, 2009. "Intergenerational Transfers and the Stability of Public Debt with Short-Lived Governments," Mathematical Population Studies, Taylor & Francis Journals, vol. 16(1), pages 79-104.
    7. Helliwell, John & Huang, Haifang, 2011. "New measures of the costs of unemployment: Evidence from the subjective well-being of 2.3 million Americans," Working Papers 2011-3, University of Alberta, Department of Economics.
    8. Håkan Selin, 2012. "Marginal Tax Rates and Tax‐Favoured Pension Savings of the Self‐Employed: Evidence from Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 79-100, March.
    9. Louis Kaplow, 2014. "Government Policy and Labor Supply with Myopic or Targeted Savings Decisions," NBER Chapters, in: Tax Policy and the Economy, Volume 29, pages 159-193, National Bureau of Economic Research, Inc.
    10. Nils aus dem Moore, 2014. "Taxes and Corporate Financing Decisions – Evidence from the Belgian ACE Reform," Ruhr Economic Papers 0533, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. Daphne Chen & Shi Qi & Don Schlagenhauf, 2018. "Corporate Income Tax, Legal Form of Organization, and Employment," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(4), pages 270-304, October.
    12. Kodjo Adandohoin & Vigninou Gammadigbe, 2022. "The revenue efficiency consequences of the announcement of a tax transition reform: The case of WAEMU countries," African Development Review, African Development Bank, vol. 34(S1), pages 195-218, July.
    13. Ian W.H. Parry, 2005. "Fiscal Interactions and the Costs of Controlling Pollution from Electricity," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 849-869, Winter.
    14. Philip Bunn & Garry Young, 2004. "Corporate capital structure in the United Kingdom: determinants and adjustment," Bank of England working papers 226, Bank of England.
    15. Desai, Mihir A. & Dharmapala, Dhammika, 2009. "Taxes, institutions and foreign diversification opportunities," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 703-714, June.
    16. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2016. "How to make the metropolitan area work? Neither big government, nor laissez-faire," Journal of Public Economics, Elsevier, vol. 134(C), pages 100-113.
    17. Kreiner, Claus Thustrup & Leth-Petersen, Søren & Skov, Peer Ebbesen, 2017. "Pension saving responses to anticipated tax changes: Evidence from monthly pension contribution records," Economics Letters, Elsevier, vol. 150(C), pages 104-107.
    18. Marco Francesconi & Stephen Jenkins & Thomas Siedler, 2010. "Childhood family structure and schooling outcomes: evidence for Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 1073-1103, June.
    19. Marko Koethenbuerger & Michael E Stimmelmayr, 2022. "The Efficiency Costs of Dividend Taxation with Managerial Firms," The Economic Journal, Royal Economic Society, vol. 132(643), pages 1123-1149.
    20. Tomi T. Kortela, 2011. "On the costs of disability insurance," 2011 Meeting Papers 445, Society for Economic Dynamics.

    More about this item

    Keywords

    Basic Income; Negative Income Tax; Redistribution; Distributive Justice;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:2052. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.