In this paper, we use a static microsimulation model to analyse the impact of a partial basic income on income taxes, benefit expenditure, income inequality and work incentives.

In accordance with this decision, we will limit our analysis to this class of basic income models. 1 On the basis of that report, the government decided that the experiment should focus on partial basic income models. The four options were extensively discussed in the first report our research group delivered to the government on 30 March 2016. A partial basic income model, which would leave certain basic social security benefits and earnings-related benefits intact.A full basic income model, wherein most current social benefits would be abolished.The government proposed four different general basic income models as a basis for the assignment: Consider Finnish constitutional aspects and EU law.Evaluate the strengths and weaknesses of the different basic income models and.Determine the taxation for the different models.Propose methods to integrate earnings-related benefits and different types of basic social security benefits into the basic income.Produce a detailed description of the basic income models suitable for the experiment and determine the appropriate level of basic income for these models (euros per month).The planning group was assigned the following tasks: After an evaluation of the scientific quality and competence of the participating research groups, the planning of the experiment was entrusted to a consortium led by the Research Department of the Finnish Social Insurance Institution (Kela).

In the autumn of 2015, the Prime Minister’s office called for tenders to design the basic income experiment. The government considers basic income to be a possible policy measure to reform the Finnish social security system in order to better adjust to changes in working life, to make social security more participatory, to diminish disincentives to working, to reduce bureaucracy and to simplify the overly complex tax-benefit system. The experiment is being carried out in 2017-2018 and will be followed by an assessment of its results in 2019.

The basic income experiment is one of the key projects in the governmental programme of Prime Minister Juha Sipilä’s centre-right government.

What should flat negative income tax