Re:Policies that make the poor less poor
by strken on Monday June 21, 2021 @01:46AM
(#27576640)
Gradual phase-outs are better than cliffs.
That said, losing e.g. $5 of benefits per $10 you earn plus an income tax of e.g. 10% is the same as a marginal tax rate of 60% in terms of distorting the market. Flatter cliffs are less distortionary, and a UBI is what what happens when you take that concept to its limit.
That said, losing e.g. $5 of benefits per $10 you earn plus an income tax of e.g. 10% is the same as a marginal tax rate of 60% in terms of distorting the market. Flatter cliffs are less distortionary, and a UBI is what what happens when you take that concept to its limit.