The political viability of a negative income tax

Springer Science and Business Media LLC - Tập 18 - Trang 747-757 - 2001
Jon R. Neill1
1Associate Professor, Department of Economics, Western Michigan University, Kalamazoo, MI 49008, USA, , US

Tóm tắt

This paper offers three propositions relating to the political viability of the negative income tax. One, despite its work disincentive, a majority of households would support a linear income tax that makes cash payments to low income households. However two, when government consumption is sufficiently high, a majority would favor a proportional tax over such a tax. Three, under certain conditions, a majority of households will prefer public provision of a private good or an in-kind transfer to a negative income tax. These latter two propositions offer an explanation for the public's apparent distaste for widespread cash transfers.