This paper compares a stylized version of a basic income flat tax system (BI/FT) with a means tested graduated tax system (MT/GT), with particular attention paid to potential labor supply effects of taxes. A highly simplified simulation model is developed in which individuals are homogeneous...

In October 1998, I was one of five economists who wrote a letter to the Prime Minister, suggesting a suite of policies that could help to substantially reduce the unemployment rate to around 5 per cent. The other four were John Freebairn, Ross Garnaut, Michael Keating and Chris Richardson. This...