A UBI should not be an addition to what we have already, but a replacement.
It should be part of a new tax code. A UBI and a Flat Tax.
The UBI (at the poverty level) replaces dollar for dollar all safety-net payments, for the poor ($0.9T of $2.0T). [It also ends poverty for citizens.]
It gets rid of disincentives for earning income.
It also replaces tax deductions for the rich. ($1.6T)
The cost ($2.5T) is therefore net neutral, compared to the current code.
The impact is net positive for the poor and middle class. However, while it is a static cost for the rich, it is a net dynamic positive.
Compliance with the current tax code takes 8 billion man-hours. A flat tax would require only 2 billion. This would add the equivalent of 3 million man-years from our most productive citizens (who pay taxes); or 2% annual national growth.
With an increase in national growth, the rich would pay more in taxes on higher incomes.
[Non-citizens and minors could receive a tax deduction that is the equivalent of the UBI.]
Businesses would pay the flat tax on revenue. The only tax deductions would be expenses, where the tax has already been paid. Like: salaries, domestic supplies, and services
A UBI should not be an addition to what we have already, but a replacement.
It should be part of a new tax code. A UBI and a Flat Tax.
The UBI (at the poverty level) replaces dollar for dollar all safety-net payments, for the poor ($0.9T of $2.0T). [It also ends poverty for citizens.]
It gets rid of disincentives for earning income.
It also replaces tax deductions for the rich. ($1.6T)
The cost ($2.5T) is therefore net neutral, compared to the current code.
The impact is net positive for the poor and middle class. However, while it is a static cost for the rich, it is a net dynamic positive.
Compliance with the current tax code takes 8 billion man-hours. A flat tax would require only 2 billion. This would add the equivalent of 3 million man-years from our most productive citizens (who pay taxes); or 2% annual national growth.
With an increase in national growth, the rich would pay more in taxes on higher incomes.
[Non-citizens and minors could receive a tax deduction that is the equivalent of the UBI.]
Businesses would pay the flat tax on revenue. The only tax deductions would be expenses, where the tax has already been paid. Like: salaries, domestic supplies, and services