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From: anton@ucbvax.ARPA (Jeff Anton)
Newsgroups: net.legal
Subject: Negative income tax
Message-ID: <4987@ucbvax.ARPA>
Date: Thu, 21-Feb-85 01:57:20 EST
Article-I.D.: ucbvax.4987
Posted: Thu Feb 21 01:57:20 1985
Date-Received: Thu, 21-Feb-85 21:13:16 EST
Distribution: net
Organization: University of California at Berkeley
Lines: 42

go
* I seem to remember something about a "Negative income tax" proposed
* by Milton Freedman. (sorry about the spelling)  The system is probably
* politically impossible to implement, but I'd like to hear some discussion
* on it or at least let people know about it.
* 
* Once taxable income is established, in a much simalar way as the current
* system, a flat percentage is assessed.  That would be how much tax
* you pay except that you get some refund based on how many dependents
* you support and simalar things.  This refund would not be limited
* to the percentage tax assessed from income.  Thus, low income
* people would actually be paid by the government.  This system could
* encompass the existing Social Security scheame.  Of course, to
* accept this at all we must accept that we as redistributing wealth.
* 
* income	tax			final tax
*   0	         \----|			-2000		-------------
*  2000		  \---|					 II
*  4000		   \--|					 II
*  6000		    \-|					 II
*  8000		     \|					 II
* 10000		      |			0		 II Cancels
* 12000		      |\				 II
* 14000		      |+\				 II
* 16000		      |++\				 II
* 18000		      |+++\				 II
* 20000		      |++++\		2000		--------------
* 22000		      |+++++\				 v Government operation
* 
* I don't really want to think about the number as much as the implications.
* By having a tax like this if the tax rate were 30% you would never
* really pay 30%. (But you could come close (asymtotic?)) 
*
* What do you think?
* \g	/* Bonus question: What net groups do I normally post to? */
-- 
_________________________
C knows no bounds.
					Jeff Anton
					U.C.Berkeley
					ucbvax!anton
					anton@berkeley.ARPA