New ASI paper "Free Market Welfare" features in City AM

City AM wrote an article on the findings of the ASI's latest paper, "Free Market Welfare", which champions a negative income tax system as an alternative to the current tax credits scheme.

The government should replace all major welfare payments with “nega­tive income tax”, an eyebrow-raising report from free market campaign group the Adam Smith Institute (ASI) has suggested.

The radical negative income tax would pay out to British citizens in decreasing amounts until they reach a certain wage, when they would begin paying tax.

Read the full article here. 

Britain’s welfare system is overcomplicated, wasteful and counterproductive. In Free Market Welfare: A case for a Negative Income Tax, Michael Story makes the case for merging most working-age benefits, including tax credits, into a Negative Income Tax – a single, tapered payment that tops up the wages of the working poor and guarantees that work always pays.