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In practice, negative income tax and UBI are the same thing. UBI funds would be paid out of the federal budget, which would be funded by taxes. Above a thresh
by PragmaticPulp 5y ago
In practice, negative income tax and UBI are the same thing.
UBI funds would be paid out of the federal budget, which would be funded by taxes.
Above a threshold, earners would receive UBI but their taxes would increase by more than their UBI. It would still be called "universal" but it would be erased (and then some) for anyone earning more than a relatively low amount.
Negative income tax basically skips the distribution and collection and gets straight to the point.
The money must come from somewhere.
- hackeraccount 5y agoThe problem with unemployment right now that people are worrying about is that it's a BI without the U. It might effectively be a marginal tax on work that looks pretty high.
- yellowapple 5y ago> Above a threshold, earners would receive UBI but their taxes would increase by more than their UBI. This assumes the use of an income tax. That's currently the case now, but moving to a more economically-efficient tax (cough cough land value tax cough cough) would prevent that situation entirely.