Basic income versus wage subsidies: Competing instruments in an optimal tax model with a maximin objective
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Economics and Philosophy 20 (1):147-183 (2004)
This article challenges the general thesis that an unconditional basic income, set at the highest sustainable level, is required for maximizing the income-leisure opportunities of the least advantaged, when income varies according to the responsible factor of labor input. In a linear optimal taxation model (of a type suggested by Vandenbroucke 2001) in which opportunities depend only on individual productivity, adding the instrument of a uniform wage subsidy generates an array of undominated policies besides the basic income maximizing policy, including a “zero basic income” policy which equalizes the post-tax wage rate. The choice among such undominated policies may be guided by distinct normative criteria which supplement the maximin objective in various ways. It is shown that most of these criteria will be compatible with, or actually select, the zero basic income policy and reject the basic income maximizing one. In view of the model's limited realism, the force of this main conclusion is discussed both in relation to Van Parijs' argument for basic income in Real Freedom for All (1995) and to some key empirical conditions in the real world. Footnotes1 I am grateful for useful comments on various stages of this paper by Marc Fleurbaey, Susan Hurley, Mathias Hild, Dirk Van de gaer, Frank Vandenbroucke, Alex Voorhoeve, Roland van der Veen, Andrew Williams, Chris Woodard and an anonymous referee. Above all I thank Loek Groot for his contribution. The research has also been supported by the Netherlands Organization for Scientific Research (NWO), and the Social and Political Theory Program of the Research School of Social Sciences, Australian National University.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Matt Zwolinski (2011). Classical Liberalism and the Basic Income. Basic Income Studies 6 (2):1-14.
Edward J. McCaffery (2006). The Uneasy Case for Capital Taxation. Social Philosophy and Policy 23 (2):166-184.
James D. Gwartney & Robert A. Lawson (2006). The Impact of Tax Policy on Economic Growth, Income Distribution, and Allocation of Taxes. Social Philosophy and Policy 23 (2):28-52.
Daniel Moseley (2011). A Lockean Argument for Basic Income. Basic Income Studies 6 (2):11.
Simon Wigley (2006). Basic Income and the Problem of Cumulative Misfortune. Basic Income Studies 1 (2).
Colin Farrelly (1999). Justice and a Citizens' Basic Income. Journal of Applied Philosophy 16 (3):283–296.
Donald R. Nichols & William F. Wempe (2010). Regressive Tax Rates and the Unethical Taxation of Salaried Income. Journal of Business Ethics 91 (4):553 - 566.
Added to index2009-01-28
Total downloads37 ( #87,779 of 1,724,748 )
Recent downloads (6 months)1 ( #349,121 of 1,724,748 )
How can I increase my downloads?