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It's a complex issue. But it's something that needs to be made explicit in any discussion, not swept under the rug. I'm not saying I'm able to resolve this is
by google15 11y ago
It's a complex issue. But it's something that needs to be made explicit in any discussion, not swept under the rug. I'm not saying I'm able to resolve this issue myself, but I think that basic income advocates need to be challenged whenever they use misleading argumentation, even if they are ultimately correct.
At any income level you can make arguments why their work output would be more/less sensitive to taxation. We are talking about a difference in a difference (how much one group changes their work in response to tax, vs another) and not absolutes, which complicates matters. E.g. poor people need the money more, so maybe they are less responsive to marginal tax rates.
Also, there are some taxes where the disincentive effect is beneficial. Basic income funded by a carbon tax seems like a good combination.
Pollution taxes are a good idea for their own sake, but they will only cover a tiny percentage of basic income or welfare.