Deputy Director of the Adam Smith Institute, Sam Bowman, was interviewed for BBC Radio Wales on the government's proposed tax credit cuts, and argues that a negative income tax would be a better, simpler system of welfare.
In a report that we released today, we called on the government not to cut tax credits, but to simplify the system, and to simplify the benefits system in general into what some economists call a negative income tax.
Listen to the full interview here. (Starts 49:12)
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.