The New Economics Foundation has proposed that the Income Tax Personal Allowance should be replaced by an unconditional income for every adult over the age of 18 apart from those earning over £125,000. To read their report, click here.
To read an article in The Guardian, click here.
Our comment: It’s a pleasure to see the New Economics Foundation join in the Citizen’s Basic Income debate. If we might suggest two amendments to the proposal: To pay the Weekly National Allowance to everyone, including those earning over £125,000 per annum, would mean that a genuine Citizen’s Basic Income would be paid, with the important advantage that almost no administration would be required. It would be no problem preventing high earners from benefitting from the Weekly National Allowance by increasing the Income Tax rate for those earning over £150,000. And to reduce the National Insurance Contribution Primary Earnings Threshold to zero would enable a larger Weekly National Allowance to be paid. (Research on a scheme similar to this can be found here.)
Interesting that the report’s authors have chosen a name for the allowance similar to the one proposed by a recent Citizen’s Basic Income Trust working group when it prepared draft illustrative legislation for a Citizen’s Basic Income scheme.
You can read our review of the report here.