A Basic Income for Housing? Simulating a Universal Housing Transfer in the Netherlands and Sweden
-
Manos Matsaganis
The gradualist approach towards an unconditional basic income for all involves the introduction or extension of universal benefits in place of current income-tested ones. Such a policy shift might cause higher fiscal costs or adverse distributional effects, at least in the short run. However, this need not always be the case. Using the tax-benefit model EUROMOD, the article simulates the introduction of a universal housing transfer – that is flat rate, tenure neutral and budget neutral – in place of mortgage interest tax relief and housing benefits in the Netherlands and Sweden. As it turns out, the regressive effect of mortgage interest tax relief thwarts the progressive effect of housing benefits. In view of that, replacing both by the universal housing transfer (equivalent to a partial basic income for housing) would enhance tax progressivity and reduce income inequality at no extra fiscal cost. Policy implications and possible objections are discussed in the concluding section.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Articles in the same Issue
- Front Matter
- Content
- From the Editors
- List of Contributors
- Research Article
- Is Basic Income Viable?
- A Basic Income for Housing? Simulating a Universal Housing Transfer in the Netherlands and Sweden
- Anthroposophical Reflections on Basic Income
- Research Note
- Basic Income and Economic Integration
- Reforming Tax Incentives Into Uniform Refundable Tax Credits
- Debate
- Basic Income and the Republican Ideal: Rethinking Material Independence in Contemporary Societies
- A Republican Right to Basic Income?
- Property and Republican Freedom: An Institutional Approach to Basic Income
- Why Republicanism?
- The Republican Case for Basic Income: A Plea for Difficulty
- Book Review
- Review of Harvey and Boyle (eds.), Basic Income Guarantees and the Right to Work
- Review of Guy Standing and Michael Samson, A Basic Income Grant for South Africa
- Review of Tony Fitzpatrick, New Theories of Welfare
- Review of Erik Olin Wright (ed.), Redesigning Distribution
Articles in the same Issue
- Front Matter
- Content
- From the Editors
- List of Contributors
- Research Article
- Is Basic Income Viable?
- A Basic Income for Housing? Simulating a Universal Housing Transfer in the Netherlands and Sweden
- Anthroposophical Reflections on Basic Income
- Research Note
- Basic Income and Economic Integration
- Reforming Tax Incentives Into Uniform Refundable Tax Credits
- Debate
- Basic Income and the Republican Ideal: Rethinking Material Independence in Contemporary Societies
- A Republican Right to Basic Income?
- Property and Republican Freedom: An Institutional Approach to Basic Income
- Why Republicanism?
- The Republican Case for Basic Income: A Plea for Difficulty
- Book Review
- Review of Harvey and Boyle (eds.), Basic Income Guarantees and the Right to Work
- Review of Guy Standing and Michael Samson, A Basic Income Grant for South Africa
- Review of Tony Fitzpatrick, New Theories of Welfare
- Review of Erik Olin Wright (ed.), Redesigning Distribution
