ABSTRACT
It is the long-term policy of the British Liberal Party to replace all existing social security benefits with tax-free credits, some withdrawn through the income tax system in the same way as Basic Incomes, and some conditioned on labour market status as with the existing system. The scheme is designed to be revenue neutral assuming a 44 percent starting rate of tax. The non-withdrawable tax credits recommended by Philip Vince are like the convertible tax credits proposed in the 1972 Tax-Credit Green Paper. In the UK, one of the earliest attempts to simulate the distributional and marginal tax rate effects of a major tax/benefit reform proposal concerned the Vince Tax-Credit scheme. The scheme was produced by Professor A. B. Atkinson and Holly Sutherland at the London School of Economics in 1984. In an article written for the Basic Income Research Group in 1986, Vince described the scheme "as an integrated replacement for personal income tax reliefs and social security benefits".
