Our Proposal: The Three-Pillar Integrated Model

Jong-sung You (), Nam Hoon Kang () and Seungju Lee ()
Additional contact information
Jong-sung You: Yonsei University, Korea Inequality Research Lab
Nam Hoon Kang: Hanshin University
Seungju Lee: Daegu University, Department of Social Welfare

Chapter 6 in UBI from Idea to Reality, 2026, pp 135-155 from Palgrave Macmillan

Abstract: Abstract This chapter presents the authors’ concrete policy package for a new income security system in South Korea, integrating three core components: Common Wealth Dividends, a Negative Income Tax (NIT)-type basic income, and a Universal Earned Income Tax Credit (Universal EITC). First, the “Common Wealth Basic Income” is established by converting regressive basic personal tax allowances into universal refundable tax credits and distributing revenues from a Land Value Tax and Carbon Tax. This pillar provides a universal dividend equivalent to 3% of per capita GNI. Second, the NIT-type basic income provides a guaranteed income floor set at 10% of the average income for adults and 20% for children and the elderly, financed by a 10% tax on excess income. Utilizing a comprehensive definition of income including imputed rent, this scheme replaces categorical benefits like the Basic Pension and partially substitutes means-tested social assistance. Third, the authors propose transforming existing employment income deductions and credits into a “Universal EITC” operating on an individual basis without a phase-out range. This acts as participation income to subsidize social insurance premiums for precarious workers, eliminating blind spots.

Keywords: Common Wealth Dividends; NIT-type Basic Income; Universal EITC; Basic personal tax allowances; Universal refundable tax credits; Land Value Tax; Carbon Tax; Guaranteed income floor; Break-even threshold; Comprehensive definition of income; Phase-out range; Social insurance premiums; Social insurance blind spots (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:etbchp:978-3-032-26200-4_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9783032262004

DOI: 10.1007/978-3-032-26200-4_6

Access Statistics for this chapter

More chapters in Exploring the Basic Income Guarantee from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().