Huh? Nobody's suggesting a 100% rate. Every dollar you earn increases your income with a negative income tax, it just doesn't increase it by a full dollar. It might be 90 cents. Still a fairly strong incentive to work.
Fair enough, but at the lowest income levels every cent counts. I don't see any benefit in it. It seems like people prefer it because of a similar misunderstanding about the alternative (that the basic income isn't taxed for people who earn significantly more, thus its price tag is exactly N people * N dollars).
Fair enough, but at the lowest income levels every cent counts. I don't see any benefit in it.
Isn't that directly contradicting the point you made earlier? If every cent counts at the lower level, then even earning 90 cents on the dollar extra is still plenty incentive to attempt to earn more.
