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What is the difference between LIG and a "Negative Income Tax" proposed by Milton Friedman?

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Christopher Wells

Hi Girls,

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.

Here is Milton Friedman discussing it on YouTube
https://www.youtube.com/watch?v=iHv4eUJfodA
https://www.youtube.com/watch?v=xtpgkX588nM

Please let me know what the difference is? How is LIG better than a NIT system?

Thanks
Chris Wells

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Viktor Persson

The Living Income Guaranteed is a more of an holistic solution to our current problems than the negative income tax. If you read the proposal you will see that we propose some radical changes in the way that our political and economical infrastructure has been set up.

One of the primary differences is that the Living Income Guaranteed will not be dependent upon tax payments to function but will instead be founded on the citizen co-sharing vital resources; the income generated from these resources will thus go back to the people owning them.

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