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There is still at least one break point with a UBI since it is payed for by money gained through taxation. While in theory everyone 'gets' the UBI those that pa
by gehwartzen 9y ago
There is still at least one break point with a UBI since it is payed for by money gained through taxation. While in theory everyone 'gets' the UBI those that pay more than the UBI in taxes effectively just get taxed that amount less. There is a break point where the money you pay in taxes matches the UBI.
- DougWebb 9y agoThat's not a breakpoint, it's a smooth transition. A breakpoint is when you earn $X, and that's low enough to get $Y in welfare. But if you work longer/harder the total amount you get is still $X+$Y because your welfare amount is reduced dollar-for-dollar with your earnings above $X. You don't start to increase your income unless you manage to earn more than $X+$Y entirely on your own. This creates a huge disincentive to earn more than $X, because for most people at that income level the jump to earning $X+$Y seems insurmountable.