Edited By Rasim Yilmaz, Günther Löschnigg, Hasan Arslan and Mehmet Ali Icbay
Negative Income Tax as a Social Politics Instrument
It has become hard for low-income groups to reach the needed consumption of goods as a result of the continuous impoverishment of these groups lead by the capitalism mode of production. Besides, some parts of the economic system have increasingly become richer while some parts of economic system have become increasingly impoverished over time. So, it is required to tackle the problem of poverty.
Poverty can be defined as struggling financial troubles or having financial conditions that are below the desired level of people, communities, or countries. Poverty is divided into three groups: absolute poverty, relative poverty, and multi-dimensional poverty. Accordingly, the inability to meet the basic needs of a range is defined as absolute poverty. While income inequality in society status is called relative poverty, social exclusion is called multidimensional poverty (Middleton & Roberts, 2004, p. 3).
Both developed and developing countries have been working to cope with all kinds of poverty mentioned above for many years. In 1601, Poor Law’s was put into action, issued to fight against poverty and to protect the community in the United Kingdom (UK). The Act, with the purpose of ensuring a minimum level of income to people, can be considered as the first law of that kind (Figari & al, 2010, p. 3). Negative income tax (NIT) as a poverty alleviation tool provides financial support to all individuals living below the poverty line depending on the extent of the country’s wealth (Aktan and...