Three Definitions and a Typology: Basic Income, Income-Tested Benefit, and BI-Consistent Negative Income Tax

Abstract While BIEN’s 2016 definition of ‘basic income’ (BI) provides a sound base, some of the wording requires clarification, including an examination of ‘unconditionality’. Timing is the key both to ex ante and ex post senses of 'unconditionality' and to the meanings of 'with or without means test'. This latter phrase defines the essential difference between an income-tested benefit (ITB) and a BI, such that an ITB is ‘a net income paid in arrears’, whereas a BI is ‘a gross income paid in advance. A negative income tax (NIT) is also reviewed, exploring how to convert an existing system into a BI-consistent NIT administering BIs, and thus defining the term. A simple typology compares a BI, a NIT and an ITB and their relationships with an income tax system.