2 ms·
If your paycheck is $10k you will get $(24k-10k)/2 = $7k. If you "double your salary to $20k" the difference is now $(24k-20k)/2 = $2k. "So you get a $10k rai
by stazz1 7y ago
If your paycheck is $10k you will get $(24k-10k)/2 = $7k. If you "double your salary to $20k" the difference is now $(24k-20k)/2 = $2k. "So you get a $10k raise and take home only $5k more" -- yes that's exactly right. You are suggesting this is a negative externality but I disagree, the subsidy is not a static guarantee, it is a guarantee of help. The whole goal is to close the inequality gap. Therefore, one will get less Guaranteed Income the closer one is to Climb-Out-Bound. That's the whole goal. If this is misguided compared to giving everyone including all the lazy asses and the hardworkers a flat equal rate, let me know.
The equation is pretty straightforward and there is a pretty graph here. https://pbs.twimg.com/media/EQTCmq0UwAAM7Ku?format=png https://pbs.twimg.com/media/EQTCmq0UwAAM7Ku?format=png
Choose a Climb-Out Bound and adjust the amounts accordingly.