Uniersal basic income

http://greyshade.blogspot.com/2004/12/tax-and-welfare-window-of-opportunity.html

Greyshade had done some good work modeling a proposal called "universal basic income" this is a mechanism to solve the problem of marginal tax rates close to 100% asising from reductions in benefit as ones income increaces.

It sounds like a good system that could be viewed as socialist or not socialist depending on exactly how you operationalize it but either way it should be more efficient. No discouragement for work AND even the small changes to the taxation of richer people seem to be efficient.