Negative Income Tax

Based on some ideas expressed by Milton Friedman, the negative income tax is a compromise of sorts. It allows a small amount of government assistance in exchange for the elimination of the welfare state. It achieves the goals of those who advocate a safety net by effectively setting an income floor, while not sacrificing an incentive to work, invest, save, and prosper.

Category:

News & Politics

Tags:

• Economics
• Politics
• Balanced
• Budget
• Taxes
• Milton
• Friedman
• Negative
• Income
• Tax
• Welfare
• Liberals
• Conservative

[Myndir]

Brilliant explanation. A negative income tax is a good way to combine getting rid of poverty and reducing the role of government in society, ie. providing the best of both worlds.

[DevastatorsPissed1]

Sounds like a great idea... which means it will never happen.

[adubashi]

@oihhow

Yes, but its alot more efficient than the welfare/entitlements we have now

[adubashi]

If everyone has ten-thousand dollars, then wouldn't home prices/food prices adjust to this?

And then wouldn't we still have homelessness and people going hungry?

Not trolling, just asking

[MrPaxy69]

@oihhow yes of course it is. When Mr. Friedman first presented this idea it was presented as a bridge. The issue he was compromising on was that any major shock to the system has negative effects. This system was designed to be implemented as a short term solution during the change between the government taking care of people therefore making them less of a person and people being truly free and taking care of themselves.

[oihhow]

isnt giving people who dont have any income $10,000 and letting them pay no taxes still a form of welfare/entitlement?

[H1TMANactual]

Friedman was a genius!

[TheCrappyaccount]

There are serious costs to the negative income tax which you have not mentioned and you should consult some professional papers on economics before you make these kind of videos.

[moartoad]

This is freaking awesome, and woud save the world. But wont happen. :(

[TheFederalistVoice]

A negative tax would eliminate medicaid, because it would no longer be necessary, allow for drastic cuts and reforms to medicare and social security because the biggest slice of those two programs are geared to the working class poor, food stamp would be eliminated, and the entire entitlement system would virtually need not be in existence. Add the negative income tax amendment now! It creates equality without destroying capitalism and pro-growth economic policies.

[raptors11111]

@QuickSilverD Yeah I see your point for sure. But don't people already do that sort of thing now? I know the NIT doesn't solve the issue of people lying about income but I'm not really sure how it could be solved. Its not that huge of a deal though I don't think. The difference between earning 12k and earning 7k is only about $1200 difference in tax at 25%. Its not like an extra $1200 is going to put this guy into the middle-upper class when he only makes 12k to start with. I see your point tho

[raptors11111]

@QuickSilverD Yeah I see your point for sure. But don't people already do that sort of thing now? I know the NIT doesn't solve the issue of people lying about income but I'm not really sure how it could be solved. Its not that huge of a deal though I don't think. The difference between earning 12k and earning 7k is only about $1200 difference in tax at 25%. Its not like an extra $1200 is going to put this guy into the middle-upper class when he only makes 12k to start with. I see your point tho