"Negative income tax" should be introduced to tackle said well-being IEA
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The reflection group claimed Iain Duncan Smith, work and Pensions Secretary, to large swaths of scrap benefits system.
The influential group claimed of Iain Duncan Smith, work and Pensions Secretary, large parts of the system of benefits of scrap and spur people to work with a radical "negative tax."
Author of the document, Kristian Neimietz IEA investigator poverty, argued for the level of basic income support to be lowered and benefits which tax benefits for children, the winter fuel allowance and buses free passes to be abolished for the middle classes.
Instead, the document suggests setting a level of tax on the income of households, based on the number of members of the family.In the system, if the earnings were less level of game, the Government would pay a credit of the difference - négatif.Si income tax revenues are high, the household to pay tax.
Mr. Neimietz document wrote: "the access to benefits should be restricted to ways... that operate the condition of particular droit.En negative income tax should be conditional upon employment on a full-time basis, restricting the reception with low incomes who do their best to improve their situation."
He adds: "the rationale is simple: top up income from full-time low-paid workers is much cheaper than replacement of compensation for several days of work."
Model of M. Neimietz would see the end of the current system that pay taxes and prestations.Au place this households either would taxpayers or recipients of transfer, which he argued would improve the transparency and simplicity.
Academic, that shaped parts of his argument on the systems put to the test in the United States says that the system could save billions of pounds of well-being.
