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Milton Friedman, the Negative Income Tax, and the Evolution of US Welfare Policy

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  • Robert Moffitt

Abstract

The negative income tax proposed by Milton Friedman represents one of the fundamental ideas of modern welfare policy. However, the academic literature has raised two difficulties with it, one challenging its purported work incentives and the other suggesting the possible superiority of work requirements. In addition, work requirement approaches have gained ground in actual U.S. welfare policy over the last 30 years and the number of different programs has proliferated, another development counter to the negative income tax. On the other hand, the Earned Income Tax Credit has produced a negative-income-tax-like program on a vast scale.

Suggested Citation

  • Robert Moffitt, 2002. "Milton Friedman, the Negative Income Tax, and the Evolution of US Welfare Policy," Economics Working Paper Archive 486, The Johns Hopkins University,Department of Economics.
    • Handle: RePEc:jhu:papers:486
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Milton Friedman: a question
      by chris dillow in Stumbling and Mumbling on 2006-11-17 19:31:11

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