Implementing a Negative Income Tax. Net Cost, Poverty and Inequality Effects
Rafael Granell and
Amadeo Fuenmayor ()
Hacienda Pública Española / Review of Public Economics, 2019, vol. 228, issue 1, 83-108
The main aim of this paper is to propose a financially viable alternative to the current Spanish system of social protection: A Negative Income Tax (NIT) unifying in a single mechanism the system of pub¬lic benefits and income tax. We analyse the main characteristics of the NIT and simulate several NIT proposals for Spain, using the Living Conditions Survey. These proposals are distinct in that they do not suppose an additional cost in the tax-benefit system. The results of our simulations indicate a radi¬cal improvement in the indicators of poverty and inequality, especially extreme poverty, and also a redistribution of income from the elderly to families with children
Keywords: Basic Income; Negative Income Tax; Poverty; Inequality; Microsimulation. (search for similar items in EconPapers)
JEL-codes: C8 H24 I38 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hpe:journl:y:2019:v:228:i:1:p:83-108
Access Statistics for this article
More articles in Hacienda Pública Española / Review of Public Economics from IEF Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().