What is the difference between LIG and a "Negative Income Tax" proposed by Milton Friedman?
I'm not sure how much you girls know about old school economic solutions provided during the the 19th century.The problems in the past are the same problems we are facing today. Milton Friedman came up with a Negative Income Tax System as a solution.
In economics, a negative income tax (abbreviated NIT) is a progressive income tax system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government. Such a system has been discussed by economists but never fully implemented.
Negative income taxes can implement a basic income or supplement a guaranteed minimum income system (Which is the same as the LIG). A negative income tax system would replace the welfare system and does not discriminate or put people through eligibility tests. It gives people who have an income under a certain amount a basic level of income.
Please let me know what the difference is? How is LIG better than a NIT system?