6533b838fe1ef96bd12a3ed6
RESEARCH PRODUCT
Implementing a Negative Income Tax. Net Cost, Poverty and Inequality Effects
Amadeo FuenmayorRafael Granellsubject
Economics and EconometricsExtreme povertyPovertyInequalityPublic economicsmedia_common.quotation_subject05 social sciencesNegative income taxEconomiaImpostosSocial protectionIncome tax0502 economics and businessEconomics050207 economicsRedistribution of income and wealthFinance050205 econometrics media_commondescription
The main aim of this paper is to propose a financially viable alternative to the current Spanish system of social protection: A Negative Income Tax (NIT) unifying in a single mechanism the system of public benefits and income tax. We analyse the main characteristics of the NIT and simulate several NIT proposals for Spain, using the Living Conditions Survey. These proposals are distinct in that they do not suppose an additional cost in the tax-benefit system. The results of our simulations indicate a radical improvement in the indicators of poverty and inequality, especially extreme poverty, and also a redistribution of income from the elderly to families with children.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2019-03-01 | Revista Hacienda Pública Española |