case study

Description

1)  Read the Harvard Case 2)  Understand and define Basic Income and the differences between each of the “Basic Income programs”: Universal basic income, Guaranteed minimum income, Negative income tax, and Citizen’s dividend 3)  Give an example (preferably from the U.S. when possible) of each of the above taxes. 4)  Thinking back to our discussion in Lecture #2 of the 5 elements of “good” tax policy, how do each of the “Basic Income programs” measure up? Concisely support your answers with what you learned about the 5 pillars of good tax policy. 5)  What problems does Basic Income solve and under what assumptions? What problems might it create? 6)  Do Basic Income programs leave people worse off or better off than other types of income support/welfare programs? 7)  Could Basic Income programs be more effective in reducing income inequality than a more progressive tax system? How do the two differ in terms of administrative costs, amounts paid, behavioral responses? 8)  Do you think it’s fair to rely on the assumptions of “wherewithal to pay”/”ability to pay” and make high-income taxpayers pay higher marginal rates to subsidize a Basic Income program? Are there any issues with relying on high-income taxpayers to fund the program? 9)  In light of all the information you read and analyzed above, design your own Basic Income program for the U.S.: Which model of Basic Income do you think is best? How would basic income payments be made to recipients? Would income be topped-up to a certain level OR should an NIT model be used OR should people get a universal payment each month, regardless of income? Why? What population would you choose to receive the basic income payments? How would you decide and what parameters would you suggest? How would you fund your program on a national scale? Would you raise the marginal tax rates to high-income taxpayers or eliminate other social support programs? What to submit? Your 2-3 page pdf filing containing: 1)  1-2 pages summarizing your answers to each of the questions 1-8 in your own summarized words. (Do not just give me the definitions. Put it into your own words.) 2)  1 page proposal of your Basic Income program for the U.S. (question 9). 3)  Be sure to use 11-12 point font and type your full name at the top of the first page. 4)  Please be prepared to discuss the questions above and discuss your program against others in class (i.e., what makes your program strong(?) and what are its weaknesses(?) so you are prepared to defend and support your program and differentiate it from others)