Libertarian's Forum
Libertarian Forum to discuss politics and free market economics.
Libertarian's ForumLibertarian's ForumFreedom Forum › Negative Income Tax
Page Index Toggle Pages: 1 [2]  Send TopicPrint
Hot Topic (More than 10 Replies) Negative Income Tax (Read 2447 times)
LibertariCAN
Libertarian Freedom Member
*****
Offline

Freedom Forever

Posts: 593
Location: Canada
Joined: Jan 25th, 2013
Re: Negative Income Tax
Reply #10 - Aug 16th, 2013 at 5:21pm
Print Post  
Crystallas wrote on Aug 16th, 2013 at 3:30pm:
I'm not sure if he did it in a video. He has mentioned in some later videos that he separated advocacy and theory with things like the negative income tax, central banks, ect. If I had to guess, I would say that his "flip-flop" occurred when he changed his mind, and felt a Federal Reserve was destructive. He also revised his Negative Income Tax proposal at later dates as well to be a central planned method to replacing all welfare programs(some attempt to salvage his academic work for an ideological usage).

Once Rothbard died, Milton didn't have that kind of academic rivalry. He changed from being a Republican-conservative(or an "economic liberal" as he suggested in discussion about free to choose, and free to choose with your own money), to becoming a "consiquentialist-libertarian" in the same time frame.

Speaking of which, I do know of some good Rothbard videos where he goes into basic details of the Negative Income Tax. Far from Rothbard's best lectures, but it just so happens that someone was able to record the audio and share it. Negative Income Tax talk starts around 12 minutes, but the whole clip is worth listening to.
http://www.youtube.com/watch?v=DD0g6Et2M8M

http://mises.org/daily/2406/


Very interesting. I enjoyed that entire clip.

However, there were some things he said in there that made sense only in the context of the academic environment of 1970, as opposed to the context of Friedman's life's work and opinion changes that occurred in the 80s, 90s, and before he died.

I think toward the end of his life, Milton would have found himself agreeing with Rothbard more than he thought he ever would.
  

Back to top
 
IP Logged
 
Crystallas
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 2108
Location: R[̲̅ə̲̅٨̲̅٥̲̅٦̲̅]ution
Joined: May 4th, 2011
Re: Negative Income Tax
Reply #11 - Aug 17th, 2013 at 2:15am
Print Post  
LibertariCAN wrote on Aug 16th, 2013 at 5:21pm:
Very interesting. I enjoyed that entire clip.

However, there were some things he said in there that made sense only in the context of the academic environment of 1970, as opposed to the context of Friedman's life's work and opinion changes that occurred in the 80s, 90s, and before he died.

I think toward the end of his life, Milton would have found himself agreeing with Rothbard more than he thought he ever would.


The clip is okay, and of course it's from 1970, so the context of his lecture can not supplement forward time.  Grin

The Other article is a better piece to dismantle the 'NIT'.
  
Back to top
 
IP Logged
 
LibertariCAN
Libertarian Freedom Member
*****
Offline

Freedom Forever

Posts: 593
Location: Canada
Joined: Jan 25th, 2013
Re: Negative Income Tax
Reply #12 - Aug 17th, 2013 at 11:18am
Print Post  
Crystallas wrote on Aug 17th, 2013 at 2:15am:
The clip is okay, and of course it's from 1970, so the context of his lecture can not supplement forward time. Grin

The Other article is a better piece to dismantle the 'NIT'.


Yes, it was the article itself that I enjoyed reading the most when it came to NIT.
  

Back to top
 
IP Logged
 
Unbiased America
Junior Member
**
Offline

Libertarian's Forum

Posts: 12
Joined: Jul 19th, 2013
Re: Negative Income Tax
Reply #13 - Aug 18th, 2013 at 8:02am
Print Post  
Liberalterian wrote on Aug 16th, 2013 at 12:21pm:
This means that it discourages people from improving their situation and moving up in a career path.


Any progressive income tax or welfare program creates a disincentive to work. Today, a single black mother in Philadelphia, for example, making $29,000 is eligible for nearly $30,000 in benefits, resulting in a total of about $57,000 to pay her bills.

Now what if we offer her a 10% raise at work? Now shes making $31,900 in wages but she is no longer eligible for $7,000 in housing assistance, and her food stamp benefits are cut by $3,000. Thus as a result of a 10% raise, she ends up with $49,900 in wages and welfare to pay her bills. A 10% raise REDUCED her proceeds by more than $7,000!

Okay, what if the same woman is a natural leader at work, and we decide to promote her to the manager position and give her a 50% raise? Now shes making about $45,000 in wages. But shes lost almost $30,000 in government aid! Amazingly, as a result of this promotion and huge raise, she now has only $42,000 to pay her bills! IN FACT, FINANCIALLY SHED BE BETTER OFF IF SHE QUIT HER JOB ALTOGETHER, WITH WELFARE OF $47,000 FOR THE JOBLESS!!!

This incredible fact has resulted in a society in which those groups most affected by welfare are financially encouraged NOT to advance to leadership positions, NOT to compete for better jobs, and in some situations, NOT to work at all!

This chart nicely summarizes the perverse incentives provided by progressive welfare:

https://www.facebook.com/photo.php?fbid=144808002371870&set=pb.123061011213236.-...
  

Back to top
IP Logged
 
Page Index Toggle Pages: 1 [2] 
Send TopicPrint
 
Libertarian's ForumLibertarian's ForumFreedom Forum › Negative Income Tax
Libertarian's Forum

Libertarian's Forum Information Rules, Agreement and Privacy Policy