How about a negative income tax?

Here’s an idea I heard about from Milton Friedman, and I think it was brought up in England before Friedman wrote about it here: A negative income tax.

With a negative income tax, as I understand it, if you make a lot of money you would pay taxes. If you don’t make any money, the government would pay you taxes. Imagine the government sending you $15,000 a year if you needed it. Forever.

So, no one would make less than $15,000 a year (or whatever number had been established).

Then we could end some government programs like maybe Welfare, subsidized housing, and unemployment insurance or whatever was appropriate to eliminate. Of course, like they say, the devil is in the details. We could leave it up to the politicians to fill in those nasty details.

Interesting concept, isn’t it?

Roger L Tschappatt