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A Feasible Basic Income Scheme for GermanyConclusion and Outlook

A Feasible Basic Income Scheme for Germany: Conclusion and Outlook [The presented work discussed and analyzed a new contribution to the on-going debate about reforming the social security system in Germany. The reform proposal focused on the idea of implementing a guaranteed basic income by introducing a negative income tax for Germany. This indicates a major shift from the existing means-tested benefit scheme. The approach merged the two formerly separated spheres of income taxation and social security into a single integrated tax-and-transfer scheme. Thereby, the construction of the NIT-scheme followed different objectives than van Parijs’ original idea of an UBI. Instead of just providing the highest feasible basic income, it was tried to increase work incentives (i.e. to lower the transfer reduction rate) and at the same time to secure at least the socio-cultural subsistence level of all members of society, all substitute to the financial feasibility of the scheme. In addition, the values of the necessary parameters were selected in accordance with official laws and regulations in Germany. Hence, the proposal does not remain a hypothetical construct but can be considered as an additional contribution to the current political and scientific debate in Germany.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Feasible Basic Income Scheme for GermanyConclusion and Outlook

Part of the Contributions to Economics Book Series
Sommer, Maximilian
Springer Journals — Mar 2, 2016
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Publisher
Springer International Publishing
Copyright
© Springer International Publishing Switzerland 2016
ISBN
978-3-319-24062-6
Pages
175 –177
DOI
10.1007/978-3-319-24064-0_7
Publisher site
See Chapter on Publisher Site

Abstract

[The presented work discussed and analyzed a new contribution to the on-going debate about reforming the social security system in Germany. The reform proposal focused on the idea of implementing a guaranteed basic income by introducing a negative income tax for Germany. This indicates a major shift from the existing means-tested benefit scheme. The approach merged the two formerly separated spheres of income taxation and social security into a single integrated tax-and-transfer scheme. Thereby, the construction of the NIT-scheme followed different objectives than van Parijs’ original idea of an UBI. Instead of just providing the highest feasible basic income, it was tried to increase work incentives (i.e. to lower the transfer reduction rate) and at the same time to secure at least the socio-cultural subsistence level of all members of society, all substitute to the financial feasibility of the scheme. In addition, the values of the necessary parameters were selected in accordance with official laws and regulations in Germany. Hence, the proposal does not remain a hypothetical construct but can be considered as an additional contribution to the current political and scientific debate in Germany.]

Published: Mar 2, 2016

Keywords: Reform Proposal; Basic Income; Separate Sphere; Hypothetical Construct; Financial Feasibility

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