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Yes, you tax it back. Typically proposals include a flat tax (or flat tax increase) to pay for it. In that case, you net extra money from the system if you ma

Yes, you tax it back. Typically proposals include a flat tax (or flat tax increase) to pay for it. In that case, you net extra money from the system if you make more than the mean, and you net pay into the system if you make more than the mean, but there are no hard cliffs and your next dollar earned still means more money in your pocket at any point.

vlunkr 11y ago
Ok, combining this with a flat tax does make sense. > your next dollar earned still means more money in your pocket at any point This is critical as well, I've known people who get trapped in welfare because they are so far into it that going to work isn't really advantageous. Thanks for your input!
dragonwriter 11y ago
Most proposals I've seen include progressive tax, and usually an increase in progressivity. Also, some proposals are simply no change to funding, with the UBI directly using the funds of other benefit programs that it replaces. A flat tax (or even just a decrease in progressivity) directly works against the purpose of adopting a UBI. EDIT: Changed "all" to "most"; I've definitely seen right-wing proponents advocating varieties of UBI + Flat Tax schemes and UBI + National Sales Tax schemes, which are not funded by progressive taxes; also added the note about no-new-funding programs.
- dllthomas 11y ago
  To clarify, most proposals I've seen have involved one of the roughly equivalent options of a separate flat tax specifically to fund UBI or an increase of the same amount across all tax brackets. I have seen some proposals involving replacement of taxation generally with a flat tax coupled with a UBI - sold specifically as being able to still produce an overall progressive curve with the simplicity of a flat tax. While I think those are both positive things, I find this oversold - most of the complexity of taxation has little to do with brackets, and while the resulting curve is progressive it is only a particular family of curves and it's plenty possible that the optimal curves (by whatever metrics we assign) are not in that family. I have seen some proposals that involve a progressive increase in taxation; these have been (in my recollection) fewer and less detailed than the first category - mostly, I expect, because they are a bit harder to analyze.

vlunkr 11y ago

Ok, combining this with a flat tax does make sense. > your next dollar earned still means more money in your pocket at any point This is critical as well, I've known people who get trapped in welfare because they are so far into it that going to work isn't really advantageous. Thanks for your input!

dragonwriter 11y ago

Most proposals I've seen include progressive tax, and usually an increase in progressivity. Also, some proposals are simply no change to funding, with the UBI directly using the funds of other benefit programs that it replaces. A flat tax (or even just a decrease in progressivity) directly works against the purpose of adopting a UBI. EDIT: Changed "all" to "most"; I've definitely seen right-wing proponents advocating varieties of UBI + Flat Tax schemes and UBI + National Sales Tax schemes, which are not funded by progressive taxes; also added the note about no-new-funding programs.

dllthomas 11y ago
To clarify, most proposals I've seen have involved one of the roughly equivalent options of a separate flat tax specifically to fund UBI or an increase of the same amount across all tax brackets. I have seen some proposals involving replacement of taxation generally with a flat tax coupled with a UBI - sold specifically as being able to still produce an overall progressive curve with the simplicity of a flat tax. While I think those are both positive things, I find this oversold - most of the complexity of taxation has little to do with brackets, and while the resulting curve is progressive it is only a particular family of curves and it's plenty possible that the optimal curves (by whatever metrics we assign) are not in that family. I have seen some proposals that involve a progressive increase in taxation; these have been (in my recollection) fewer and less detailed than the first category - mostly, I expect, because they are a bit harder to analyze.