Add to Facebook
download .zip with all pictures
This idea is actually very thought out and has actual trials in Canada (though limited) that showed UBI had no negative effect on work and income.
One thing to realize is you have to set the UBI at an affordable level. 25% of the mean per capita income seems like a decent start. That puts it around 12k in the US. By setting it at 25% of the mean, you allow for increases in the UBI as the economy does well, but limits UBI from being too generous to be unaffordable.
The government is clearly where UBI has to come from. You pay for UBI in a few ways. One, is you get rid of all welfare, subsidies, food stamps, etc that we have now. UBI is much more efficient and less prone to fraud since it is simple and equal for everyone. Don’t have to high a bureaucracy to determine who gets aid and who doesn’t on the margin.
On top of that, you can increase tax rates on things like Carbon tax, gasoline tax, or other externalities. The idea is, since we all breathe the air, we should all be compensated equally for the polluting of our air.
Yes, my guess with all the numbers, the marginal tax rate for higher incomes will need to go higher as well. Do not know how much, but considering the huge good we would have by giving everyone a basic income. I know I would get taxed extra and still think worth it.
Now you are worried specifically about discouraging workers. Well we are talking about 12,000 a year. Those who make more than that won’t stop working cause they are given a basic income. Those who are willing to stop working for only 12,000 a year are not the most productive workers anyway. Few teenagers may not work. Some new mothers may decide not to work. Some jobs like Wal-Mart greeters may disappear. Again, you are not losing the most productive workers here, if any.
This could have lots of side benefits as well. Ex. Crimes of desperation would go way down. As why risk jail and losing ur freedom for a few hundred bucks if you are getting enough to live on already.