The way out of it is to ease in the use of negative income tax
The central idea animating at least the early version of the FAP was the negative income tax
, a technical term specifying the mechanism underlying the guaranteed annual income.
A negative income tax
system that totally eliminated poverty would cost, at most, $336 billion, the researchers found.
Early efforts / Most people who know the history of the negative income tax
, which is a form of GAI, associate it with the University of Chicago's Milton Friedman, who proposed such a scheme in his famous 1962 book Capitalism and Freedom.
When Ralph Helstein of the United Packinghouse Workers read Friedman's proposal for a negative income tax
, he thought to himself: "That's it.
Essentially just the negative income tax
(i.e., a cash transfer) would suffice, allowing beneficiaries to choose what to spend it on.
The negative income tax
may be the best way possible to achieve simplicity, inclusiveness, and moderate taxpayer cost.
I once wrote, "We could replace the ragbag of specific welfare programs with a single comprehensive program of income supplements in cash--a negative income tax
. It would provide an assured minimum to all persons in need, regardless of the reasons for their need.
In face of this, defenders of Basic Income argue that as advanced technology progressively reduces the amount of human labour required to expand our productive capacity, all members of society should be entitled to receive a dividend from the social investment in technology in the form of a guaranteed income, citizens' income, minimum liveable income--the concept goes by many names, some of which describe specific schemes associated with a particular politics, such as the negative income tax
favoured by Milton Friedman and his ilk.
As a result, it effectively creates a form of negative income tax
Negative income tax
, universal basic income, guaranteed annual income, for a start.
But the following report shows that National Fuel has actually paid next to nothing in state and federal income taxes over the past three years, in some cases using the tax code to its advantage in order to pay negative income tax