![Income Guarantee Policy Design: Implications for Poverty, Income Distribution, and Tax Rates](https://images.squarespace-cdn.com/content/v1/610831a16c95260dbd68934a/1686755652609-UNAX743O6RIF0ZX4TIZC/Child+Tax+Credit+3.jpg)
Income Guarantee Policy Design: Implications for Poverty, Income Distribution, and Tax Rates
This analysis features a fundamental tax reform converting personal deductions and credits into an income guarantee along with higher marginal tax rates.
![Income Guarantee Benefits and Financing: Poverty and Distributional Impacts</a>](https://images.squarespace-cdn.com/content/v1/610831a16c95260dbd68934a/1628867004608-3Z10CLZK2VZLFNI9XYR5/Money+2_transparent_1080x1080-01.png)
Income Guarantee Benefits and Financing: Poverty and Distributional Impacts
In this brief, we explore the feasibility of financing a guaranteed income and the potential poverty impacts. In general we find that income guarantee plans can work to reduce poverty at reasonable costs, such as through a fundamental federal income tax reform and carbon tax-and-dividend plan. However, poverty impacts depend on who is eligible and how the benefit is financed.