Archive for December, 2017

Welfare policy.

December 28, 2017

The current tax and benefit system was compared with two alternatives with the same top tax rate and net revenue. There was more redistribution from middle to low incomes with Guaranteed Minimum Incomes, and more redistribution from high to low incomes with Citizens Incomes funded by a flat rate income tax. Transition to Citizens Incomes, July 2018.

By replacing graduated income tax with a flat tax, the affordable citizens income (Unconditional Basic Income) is almost doubled.  Is a Basic or Citizens Income affordable?, November 2017.

Work should be allocated by self-selection not compulsion, but beneficiaries should have a reasonable financial incentive to do paid work. Benefit withdrawal is effectively a tax, and effective marginal tax rates, including benefit withdrawal, should ideally be no higher for beneficiaries than for high income earners. “Full employment”, in Alison’s manifesto.

Women should have their own money as individuals, not just as part of a family or household, and children need at least as much money as adults, if the cost of childcare, including the opportunity cost of parental childcare, is taken into account. Welfare reform for the 21st century, August 2010.

High priority was given to the need for tax and income support for women working in the home, and for more childcare facilities. The most logical way of doing this, with the least fuss, is by the basic income method. History of Basic Income politics in New Zealand, 1996.