The theory is that if you phase out a given transfer payment at, say, $1000 per month, that reduces the incentive to earn more than $1000 per month. There's som

The theory is that if you phase out a given transfer payment at, say, $1000 per month, that reduces the incentive to earn more than $1000 per month. There's some evidence to suggest that's already the case with existing means tested transfer payments (such as unemployment coverage). So instead of phasing out transfer payments at the low end, you reduce bureaucracy by introducing a universal payment, and balance it out at the high end with progressive taxes. Someone who chooses to work and earns an additional $20,000 per year would still see a real benefit from their universal payment. Someone who chooses to work and earns an additional $200,000 per year would be taxed such that their universal payment is essentially zero.