Exploring a negative income tax for South Africa: impacts on income inequality and poverty

SALDRU Repository

Show simple item record

dc.contributor.author Rasmussen, Emma Helen
dc.date.accessioned 2017-12-13T13:41:37Z
dc.date.available 2017-12-13T13:41:37Z
dc.date.issued 2017-12
dc.identifier.citation Rasmussen, E.M., (2017). Exploring a negative income tax for South Africa: impacts on income inequality and poverty Cape Town: SALDRU, UCT. (SALDRU Working Paper Number 215).
dc.identifier.isbn 978-1-928281-76-4
dc.identifier.uri http://hdl.handle.net/11090/899
dc.description.abstract This paper explores the potential of a negative income tax to tackle South Africa’s dual challenges of poverty and income inequality. Using a static, arithmetic microsimulation model with NIDS Wave 4 as the base dataset, we simulate a negative income tax in which recipients receive an income subsidy proportional to their income if it is below a set amount and a guaranteed subsidy if they have zero income. Two different sizes for the guaranteed subsidy are simulated, both pegged to recent poverty lines. The simulations show that the negative income tax significantly reduces both inequality and poverty levels, but that this necessarily comes at a high cost. en_US
dc.description.sponsorship Emma Helen Rasmussen is a PhD student at the University of Cape Town and research assistant at SALDRU. This paper is based on a chapter from my Master’s thesis on the progressivity of the personal income tax system in South Africa. I acknowledge comments and contributions from Ingrid Woolard and Murray Leibbrandt. en_US
dc.language.iso en en_US
dc.relation.ispartofseries Saldru Working Paper;215
dc.title Exploring a negative income tax for South Africa: impacts on income inequality and poverty en_US
dc.type Working Paper en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search OpenSALDRU


Browse

My Account

Statistics