I suppose I should offer a point of clarification. When I used an example of $15,000 as a universal basic income, it was just to show how the math works. I'm not saying that that amount would be ideal. Could be too high or two low, the point is to show how a universal basic income interacts with a VAT to solve some of the problems inherent in a more conventional progressive tax system.
I've also updated the original post for clarity, that in order for 33% of a purchase to go towards taxes you would need a tax rate of 50%.
Guaranteed income would lead to economic and social collapse faster than just about any other policy.
As more people jump on the welfare wagon, taxes on workers would have to go up, thus encouraging more workers to jump ship. Also employers of low wage workers would have to increase the pay to keep workers from leaving... thus leading to an increase in the price level, thus leading to a demand for a higher guaranteed income (to keep pace with inflating prices).
If this were implemented I suspect it would take about 6 months for total collapse to occur.
Some people still don't seem understand the difference between guaranteed minimum income and universal basic income.
The key difference being that the UBI doesn't go away when you start making more money, so all that stuff about people jumping ship to collect benefits is just nonsense.
The underlying theme seems to be this: get the grubby politician's hands off of both tax collection & welfare distribution. Make them both apply equally to everyone in the population.
A quality idea which no self-serving politician (and the buggers are ALL self-serving) will ever support since it undermines their own power.
I was wondering why we don't just scrap taxes and the welfare state and instead just print money and send it directly to each individual in line with inflation? I hear in Switzerland they voted for a minimum income and I was just wondering if we just relied o n giving printed cash to each individual, just enough to survive and not discourage work, wouldn't this solve so much of the problems we have now? No taxes= no pointless beuracracy and tax sheltering and the printing of cash would keep the cycle of consumerism going.
I suppose I should offer a point of clarification. When I used an example of $15,000 as a universal basic income, it was just to show how the math works. I'm not saying that that amount would be ideal. Could be too high or two low, the point is to show how a universal basic income interacts with a VAT to solve some of the problems inherent in a more conventional progressive tax system.
ReplyDeleteI've also updated the original post for clarity, that in order for 33% of a purchase to go towards taxes you would need a tax rate of 50%.
A functioning welfare state??? He might as well try to invent a perpetual-motion machine.
ReplyDeleteGuaranteed income would lead to economic and social collapse faster than just about any other policy.
ReplyDeleteAs more people jump on the welfare wagon, taxes on workers would have to go up, thus encouraging more workers to jump ship. Also employers of low wage workers would have to increase the pay to keep workers from leaving... thus leading to an increase in the price level, thus leading to a demand for a higher guaranteed income (to keep pace with inflating prices).
If this were implemented I suspect it would take about 6 months for total collapse to occur.
Some people still don't seem understand the difference between guaranteed minimum income and universal basic income.
ReplyDeleteThe key difference being that the UBI doesn't go away when you start making more money, so all that stuff about people jumping ship to collect benefits is just nonsense.
The underlying theme seems to be this: get the grubby politician's hands off of both tax collection & welfare distribution. Make them both apply equally to everyone in the population.
ReplyDeleteA quality idea which no self-serving politician (and the buggers are ALL self-serving) will ever support since it undermines their own power.
Hey cap,
ReplyDeleteI don't have any economic knowledge but...
I was wondering why we don't just scrap taxes and the welfare state and instead just print money and send it directly to each individual in line with inflation? I hear in Switzerland they voted for a minimum income and I was just wondering if we just relied o n giving printed cash to each individual, just enough to survive and not discourage work, wouldn't this solve so much of the problems we have now? No taxes= no pointless beuracracy and tax sheltering and the printing of cash would keep the cycle of consumerism going.
I think lots of people who hate their jobs would drop out if they had a basic income.
ReplyDeleteThanks for sharing!
ReplyDelete