What determines the efficiency cost of taxation in the presence of optimization errors? Employing recent results quantifying efficiency cost when consumers are subject to biases, this paper shows how budget adjustment rules, debiasing, and the nature of tax perception affect efficiency cost....

Welfare states are struggling with slow economic and job growth, fiscal pressures from rising benefit costs, demographic changes, and fears of structural economic transformation and job losses caused by information technology and computerization. This combination of factors has led some analysts...

This paper proposes and describes an evolutionary approach to development of a basic income by the Government of Manitoba in order to decrease economic disadvantage and inequality in the province. We demonstrate that a new approach is required because poverty reduction in Manitoba has lagged...

We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous wages, to study the shape of the tax and transfer system at the bottom of the distribution. The sufficient statistics are the macro employment response to taxation and the micro...

Der deutsche Staat hat im Jahr 2015 rund 888 Milliarden Euro für Sozialleistungen ausgegeben. Ein Prinzip des deutschen Sozialsystems ist das der Bedürftigkeit. Menschen, die nachweislich bedürftig sind, erhalten Leistungen des Staates. Dieses System führt jedoch zu hohen Bürokratiekosten....

We propose mechanism for implementing a two-stage harmonized Basic Income Guarantee with federal and provincial components. In Stage One, the federal government replaces its refundable and nonrefundable tax credits with an income-tested basic income delivered through the income tax system. The...

A Citizen’s Income - an unconditional and nonwithdrawable income for every individual - would offer many advantages: but because the UK's current benefits and tax systems are complex, transition to a benefits system based on a Citizen's Income could be difficult to achieve. Two previous...

This is an addendum to EUROMOD working paper EM 5/16, revisiting an illustrative Citizen's Income scheme developed in that paper. It makes a necessary adjustment to the scheme, and then develops a method for organising a Citizen’s Income pilot project.