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The Welfare Policy Dilemma of a Negative Income Tax System: Normative Approach

The question of whether a welfare policy is just and fair to all is a subject to debates. To find a solution, we address a pertinent issue of Negative Income Tax-NIT System, affected by three key actors partaking in welfare-related negotiations. The first actor/negotiator advocates, in the role of social organizations, for citizens' legal and moral rights for the delivery of primary needs. The second negotiator, in the role of public organizations, negotiates in response to non-primary but vital wants for the delivery of public goods and services. The thirdthe external player, who represents taxpayers, prefers personal consumption to moral and social understanding. The goal of taxpayers is to reduce through voting taxpayers' liabilities deposited as individual income taxes in the joint account of actors/negotiators. The threat, emanating from political and electoral maneuvering of taxpayers, may place the negotiations at risk of collapse. When the collapse is looming closer, the negotiations may breakdown prematurely. The rules and regulations of the
bargaining game, and the conditions for unanimous consent, support the claim that income redistribution marginalized by 50% median income is a realistic solution in terms of NIT System.

Authors: 
Joseph E. Mullat, Independent Researcher
Publication Date: 
August, 2013
Publication Status: 
Document Number: 
2012-013