Why don't we impliment this? it seems like the answer to so many problems, is it because the IRS is to afraid of fraud?
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Anonymous2006-12-22 22:15
All those ideas suck.
Negative income tax distorts prices and creates uneconomic consumption which creates uneconomic production which lowers the general standard of living.
Giving people money they didn't earn isn't going to solve their problem. Hell, most of the people that are poor are so because of their mindset. In many cases, if you increase their spending power by 25%, they'll buy 72" HD plasma screens from Rentacenter and get themselves in debt with it. I see this happen all the time where I live.
A maximum wage limits the profit incentive and will cause a CEO who makes slightly more than the limit let his company produce inefficiently and lower product quality, where without the maximum wage he would be motivated to keep the factory rolling smoothly, efficiently, and keep quality high. If the factory isn't making as much stuff, that's that much less stuff and that much shittier the stuff that the poor consumers are going to be getting.
All the measures presented so far in the thread would do nothing but damage to the standard of living, and the effect is always amplified on the poor.