Candice, Sharon and I (Anemone) met at Hub Mall this evening for about 2.5 hours, talking about the different types of basic income (BI) and their pros and cons (and about a whole lot of other things, too). Here is a basic summary of our discussion of different types of basic income, with some of my own thoughts. Feel free to add your thoughts in the comments.
UNIVERSAL DEMOGRANT VS NEGATIVE INCOME TAX
There are two main types of basic income: a universal demogrant (UD) and a negative income tax (NIT).
A Universal Demogrant (UD) is tax-free money that everyone gets, regardless of what they earn. Higher earners pay higher taxes on their other earnings, and will end up paying more in income tax than they receive as a UD, but they still get the UD up front.
A Negative Income Tax (NIT) is money that some people get, based on their previous year’s tax return. Everyone who earns below a certain amount would have their income topped up by the difference between what they earned and the threshold in the following year.
Negative income taxes can come in various forms, depending on what happens above the threshold. Continue reading