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So for Germany, that'd mean it ought to be lower than our current social programs? They provide an okay living, and there's not a lot of incentive to work, whic
by luckylion 6y ago
So for Germany, that'd mean it ought to be lower than our current social programs? They provide an okay living, and there's not a lot of incentive to work, which is why we have a lot of long-term unemployment.
- sokoloff 6y agoWhat is the gross amount paid monthly in Germany? If spent entirely, what amount of that is VAT taxed back to the state?
- luckylion 6y ago~1000€/mo, regular VAT is 7% for essentials like groceries, 19% for anything else, with a few exceptions. The average worker's income tax rate is ~40%, but they'll also have to pay for health insurance (included in welfare at a subsidized rate), pensions etc.
- sokoloff 6y agoThanks for the data. To me, that sounds like the end result is within a whisker of $1000/mo after deducting the VAT “rebate” to the German government when that 1000€/mo is consumed almost immediately on a mix of 7% and 19% items.
- luckylion 6y agoSure. The problem is there's little incentive to work. To achieve that, to make it uncomfortable to rely solely on UBI long-term, we'd have to make UBI lower than our current welfare programs. I don't see any proposals for that, much less any support.