000			01491pab a2200205 454500
008			180718b1995 xxu||||| |||| 00| 0 eng d
100			_aHum, Derek
245			_aReducing spending and increasing equity: how far can refundable tax credits take us?
260			_c1995
300			_ap.598-612
362			_aWinter
520			_aThe social security review now underway is intended to restructure Canada's social safety net. The principle of universality is likely to be replaced by income-conditioned transfers with improved work incentives. At the same time, the notion of a refundable tax credit lurks in the background, a legacy of the first social security review held in the 1970s. Our paper examines the rationale behind the income-testing principle, the structure of refundable tax credit plans and their relationship to income inequality in Canada. More specifically, a number of differently configured refundable tax credit options are simulated using Canadian household micro-data to evaluate the budgetary costs, the implied average tax rate required to finance the program and the resulting degree of inequality. We demonstrate the possibility of cutting government spending while simultaneously reducing income inequality in Canada. - Reproduced
650			_aInequality - Canada
650			_aIncome distribution - Canada
650			_aTaxation - Canada
650			_aTaxation
700			_aSimpson, Wayne
773			_aCanadian Public Administration
909			_a32666
999			_c32666 _d32666