asked the Minister for Social Welfare if she will make a statement outlining her views on the theory of minimum income.
Written Answers. - Minimum Income Theory.
370.
It is assumed that the Deputy has in mind the proposal for a universal minimum flat rate payment payable to all persons, with all other income being taxed at a single rate. A guaranteed minimum income is a feature of what are known as negative income tax or social dividend schemes. Under such arrangements, low-income households are allowed to retain their pre-tax income and they may also receive a supplement of "negative tax" to bring their income up to the target income. The essential feature of both approaches is that they represent an attempt to integrate social security and taxation systems.
The Commission on Social Welfare examined such proposals and assessed their relevance as strategies for social welfare-provision in the country. The commission concluded, however, that such theories do not represent a useful approach in the Irish context, particularly because of the inherent cost of such schemes and because they constitute an inflexible method of meeting income needs.
The commission's recommendations in this area are being examined in the context of the examination of their report generally.