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Unconditional Basic Income in the Czech Republic: What Type of Taxes Could Fund It? A Theoretical Tax Analysis

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  • Špeciánová Jitka

    (Faculty of Economics, University of Economics, Prague, W. Churchill Sq. 1938, Prague 3, Prague, Czech Republic)

Abstract

This paper contains a summary of public support for the idea of unconditional basic income in the Czech Republic in the first part. Interest in unconditional income can be found both in the Czech political sphere and in the social sciences community. In the second part, the article theoretically analyzes the possible sources of unconditional basic income funding. The aim of this paper is to support argumentation in favor of the implementation of BI by a systematic analysis of the real possibilities of its funding through the state tax revenues. The feasibility of funding a BI scheme using taxes on labor, property, consumption, environmental taxes, financial transaction tax, and tax on the transfer of information is considered. Consideration is also given to administrative savings that the basic income system could bring. Due to political enforceability of BI, it is important to contemplate and discuss the distortions and other problems of proposed changes in taxation, which would not be negligible as can be expected.

Suggested Citation

  • Špeciánová Jitka, 2018. "Unconditional Basic Income in the Czech Republic: What Type of Taxes Could Fund It? A Theoretical Tax Analysis," Basic Income Studies, De Gruyter, vol. 13(1), pages 1-19, June.
    • Handle: RePEc:bpj:bistud:v:13:y:2018:i:1:p:19:n:4
    DOI: 10.1515/bis-2017-0024
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    More about this item

    Keywords

    funding of unconditional basic income; Czech Republic; tax distortions; income tax; progressive consumption tax;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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