Universal basic income with flat tax reform in France

Riccardo Magnani and Luca Piccoli

Journal of Policy Modeling, 2020, vol. 42, issue 2, 235-249

Abstract: This article evaluates the effects of a revenue-neutral tax reform introducing a universal basic income scheme coupled with a flat income tax which replaces the existing minimum income benefit, several other conditional benefits and the existing progressive income taxation. To this aim we use a Micro–Macro simulation model for the French economy. Interestingly, our results show that the reform induces not only a significant reduction in income inequalities and poverty, but also a slightly positive effect at the macroeconomic level, implying that the equity-efficiency trade-off would not be produced.

Keywords: Universal basic income; Microsimulation models; CGE models (search for similar items in EconPapers)
JEL-codes: C63 C68 D31 H31 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:42:y:2020:i:2:p:235-249

DOI: 10.1016/j.jpolmod.2019.07.005

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