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I think a better solution would be a negative tax rate instead of a 0% tax rate. Imagine: On your first $24,000 / Year, you are taxed at -50%. This means, if

I think a better solution would be a negative tax rate instead of a 0% tax rate. Imagine: On your first $24,000 / Year, you are taxed at -50%. This means, if you make $12,000, you get paid an additional $6,000. If you make $24,000, you get paid an additional $12,000. This is an additional reward for working! We want to incentivize working!

Pinckney 9y ago
How much of this subsidy will be captured by workers, vs captured by employers?
slg 9y ago
This doesn't address the coming problem of automation in which unemployment numbers are likely to rise. It is also ends up basically being a regressive tax as those who make the least receive the least benefit while those who are already living comfortably receive the full benefit.
gremlinsinc 9y ago
how's that fair if you have person a working in a callcenter for slightly better pay than person b working at McDonalds. Person A makes 20k, person B makes 10k. Both work pretty shitty jobs -- I wouldn't want either.. Both work the same hours. No more jobs exist for Person A's job, so Person B couldn't rise up to their level if they wanted to. GBI works because everybody gets it -- so nobody feels like they're getting special treatment, nobody feels like they're on welfare (which causes a mental stigma to begin with) and the goal is simply to cover average rents and maybe some food. Everyone should have food and a roof. Your plan also doesn't account for what happens when all the jobs for both A and B close down because of automation which is the whole point for why we're discussing GBI more and more anyways.
- tylerhou 9y ago
  I'm pretty sure the person you replied to was being satirical.
  - ryanwaggoner 9y ago
    I’m not sure why: a NIT has some advantages relative to UBI.
MaysonL 9y ago
See: Earned Income Tax Credit https://en.wikipedia.org/wiki/Earned_income_tax_credit https://en.wikipedia.org/wiki/Earned_income_tax_credit
saas_co_de 9y ago
This is what Earned Income Credit does. It seems to work pretty well.

Pinckney 9y ago

How much of this subsidy will be captured by workers, vs captured by employers?

slg 9y ago

This doesn't address the coming problem of automation in which unemployment numbers are likely to rise. It is also ends up basically being a regressive tax as those who make the least receive the least benefit while those who are already living comfortably receive the full benefit.

gremlinsinc 9y ago

how's that fair if you have person a working in a callcenter for slightly better pay than person b working at McDonalds. Person A makes 20k, person B makes 10k. Both work pretty shitty jobs -- I wouldn't want either.. Both work the same hours. No more jobs exist for Person A's job, so Person B couldn't rise up to their level if they wanted to. GBI works because everybody gets it -- so nobody feels like they're getting special treatment, nobody feels like they're on welfare (which causes a mental stigma to begin with) and the goal is simply to cover average rents and maybe some food. Everyone should have food and a roof. Your plan also doesn't account for what happens when all the jobs for both A and B close down because of automation which is the whole point for why we're discussing GBI more and more anyways.

tylerhou 9y ago
I'm pretty sure the person you replied to was being satirical.
- ryanwaggoner 9y ago
  I’m not sure why: a NIT has some advantages relative to UBI.

MaysonL 9y ago

See: Earned Income Tax Credit https://en.wikipedia.org/wiki/Earned_income_tax_credit https://en.wikipedia.org/wiki/Earned_income_tax_credit

saas_co_de 9y ago

This is what Earned Income Credit does. It seems to work pretty well.