ABSTRACT

A negative income tax guarantees income by paying only those with low incomes, while a basic income pays everyone a small amount regardless of their income from other sources. Brazil became the first national government in the world to institute a basic income guarantee (BIG). The Brazilian Senate approved President Luiz Inacio Lula's initiative for a constitutional amendment on fiscal reform that includes for the first time the principle of a BIG. The Alaska Permanent Fund dividend system has made Alaska the most equal of all the American states. In Brazil, South Africa, and many developing countries, a huge portion of the population lives in absolute poverty. Almost all European countries have some kind of guaranteed income program with similar effects. These programs mean that developed countries have decided to pay their workers an extra amount of money to keep them above the poverty line.