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Originally Posted by expedition
If you are correct then employers wouldnt care if it goes up . But the truth is there is always a vulnerable population out there who count on a low wages.
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And that's where a negative income tax comes in. Basically you take a set amount and you don't pay tax under that, but get a refund. Let's say the amount set is 40k with a 50% rate for easy math. So if you make nothing in a year you would be paid 50% of the difference between 0 and 40k. Meaning you would take home 20k. Now let's say you could earn 10k. You now take the 30k difference and again divide it in half. So with you 10k and the 15k refund you end up making 25k. That's the essence of a negative income tax. A tax of this kind would replace all welfare programs.
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“If all mankind minus one, were of one opinion, and only one person were of the contrary opinion, mankind would be no more justified in silencing that one person, than he, if he had the power, would be justified in silencing mankind.” John Stuart Mill
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