The idea has been around for a long time in government circles: why not
simplify the whole income redistribution problem by using a negative income tax,
or guaranteed annual income. This would get the money where it needs to go,
and would much easier to administer. But although some left-leaning political parties
did show interest in the notion, it never really got traction.
Because there are downsides. Would people still be available for work? Would it end up
funding drug addiction and criminal activity? The less well-off are often vulnerable to
their environments...
Interestingly, one of the proposals being currently floated by the Trump administration
is promising. Actually, it solves the whole thing; why not do away with income tax altogether!?
That was the missing idea. A negative income tax becomes biblically simple where there
is no income tax as such. One just pays out to those who apply, and one knows who they are...
Doubtful whether this will materialize in the near future, but it is something to work toward.
Isn't it??
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