Full Citation

Title: Income Guarantee Policy Design: Implications for Poverty, Income Distribution, and Tax Rates

Citation Type: Journal Article

Forthcoming?: Yes

ISBN:

ISSN: 0028-0283

DOI: 10.1086/724254

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Abstract: A guaranteed income could greatly reduce poverty, yet the impact and feasibility depend on several key policy design choices. We empirically compare guarantee designs financed by income taxation and estimate potential labor supply responses to transfer benefits as well as financing or targeting mechanisms. The analysis features a fundamental tax reform converting personal deductions and credits into an income guarantee along with higher marginal tax rates. Additional results consider policies with a flat surtax, benefit phaseout, or welfare reform. We use microsimulation analysis based on the Current Population Survey, and we adjust for underreported income.

Url: https://www.journals.uchicago.edu/doi/abs/10.1086/724254

User Submitted?: No

Authors: Hartley, Robert Paul; Garfinkel, Irwin

Periodical (Full): National Tax Journal

Issue:

Volume:

Pages: 1-31

Data Collections: IPUMS CPS

Topics: Poverty and Welfare

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