Monday, May 26, 2008

Lump sum transfers in Namibia

BIG payments in Namibia. The BBC article is a puff piece but the idea is nonetheless an interesting one. This is not a negative income tax - it is lump sum transfers from outside the system. I think much of the action will lie in the long run when the BIG recipients come to view the money as normal rather than unusual.

Also, notice the BBCs suggestion at the end that by taxing the lump sum transfers they can become self-financing. I guess addition is not a requirement for employ at the BBC.

Hat tip (on the BBC piece): Jessica Goldberg