Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
... its removing the pay if they start working.

That's where you get the very high effective marginal penalty to working ... when benefits phase out as taxes phase in. And of course, in a piecemeal program, there is a strong incentive to means test, as it allows more to be "accomplished" for the individual goal ... while the negative impact on incentive to work is one more small incremental piece of what can add up to a quite hefty penalty.

But with a Social Dividend, just start the bottom bracket of the marginal income tax brackets a $1, because work income is in addition to the Social Dividend.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Oct 7th, 2008 at 02:16:28 AM EST
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