Comment on Hans-Georg Petersen “Pros and Cons of a Negative Income Tax”
There are many more pros than cons in this paper. Professor Petersen is quite enthusiastic about the negative income tax (NIT) as a substitute for current welfare state transfers in accordance with what he calls the social aid principle (Fürsorgeprinzip). I do not share his enthusiasm. In my view, NIT is both expensive and inefficient.
KeywordsDisability Pension Unemployment Benefit Housing Allowance Cash Benefit Factor Income
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