Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Path: utzoo!watmath!clyde!burl!ulysses!allegra!princeton!caip!topaz!ll-xn!nike!lll-crg!seismo!rochester!pt.cs.cmu.edu!cad.cs.cmu.edu!spe
From: spe@cad.cs.cmu.edu (Sean Engelson)
Newsgroups: net.misc
Subject: Welfare
Message-ID: <1011@cad.cs.cmu.edu>
Date: Wed, 17-Sep-86 19:17:26 EDT
Article-I.D.: cad.1011
Posted: Wed Sep 17 19:17:26 1986
Date-Received: Sat, 27-Sep-86 18:01:36 EDT
Organization: Carnegie-Mellon University, CS/RI
Lines: 59
Keywords: welfare, poor people, economics

An extremely good method of revamping the welfare system is the system of
inverse taxation.  That is to say, that below a certain 'critical income'
people receive money in proportion to the amount they make.  For example, if
we make our income tax formula the following:

	(INCOME - $10,000)
	------------------ ,
	       3

someone making $9,000 would receive $500, for a total of $9,500, someone
making $5,000 would get a total of $7,500.  This example assumes that the
minimum subsistence level is $5,000.  This is good because the people
receiving money have incentive to work, as if they work they WILL make more
money than not.  Also, it simplifies things a whole lot by integrating the 2
big governmental money-moving institutions, taxes and welfare.  All in all a
rather elegant solution to a messy problem.

----------------------------------------------------------------------
Sean Philip Engelson
Carnegie-Mellon University
Computer Science Department
----------------------------------------------------------------------
ARPA: spe@cad.cs.cmu.edu
UUCP: {harvard | seismo | ucbvax}!cad.cs.cmu.edu!spe
----------------------------------------------------------------------
Disclaimer: Nothing in the above article has the slightest relationship
	    to reality.  If any reality correspondences are found, 
	    please notify me IMMEDIATELY.
----------------------------------------------------------------------

















-- 
----------------------------------------------------------------------
Sean Philip Engelson
Carnegie-Mellon University
Computer Science Department
----------------------------------------------------------------------
ARPA: spe@cad.cs.cmu.edu
UUCP: {harvard | seismo | ucbvax}!cad.cs.cmu.edu!spe
----------------------------------------------------------------------
Disclaimer: Nothing in the above article has the slightest relationship
	    to reality.  If any reality correspondences are found, 
	    please notify me IMMEDIATELY.
----------------------------------------------------------------------