, Columnist
Canadian Test Shows Income Guarantees Don't Work
A Canadian study on the effects of a negative income tax shows reasons to be wary.
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A follow-up on this morning's post on guaranteed incomes: I'm reminded that Jim Manzi wrote two excellent pieces outlining the data we have on experiments with a guaranteed income. Here's his summary of a Canadian experiment that topped off the incomes of folks who worked so that they retained more of their benefits and income than they otherwise would have:
People respond to incentives. During the period of the reduced marginal tax rate, reported work earnings and reported income rose for the test group versus the control during the experimental period. Score one for the supply-siders (and common sense).