4 ms·
If you consider the (conditional) basic income in Germany ("Grundsicherung") as given, and it's partial reduction in the face of more than 100€/month income as
by namibj 4y ago
If you consider the (conditional) basic income in Germany ("Grundsicherung") as given, and it's partial reduction in the face of more than 100€/month income as income tax, one reaches the asymptotic effective (average, not marginal) tax rate of the super-rich at about 180~200€/month.
It's progressive until around 1500€/month of income (if it was salary), after which it's regressive.
UBI would fix those perverse incentives (80% marginal "tax rate" for the next few hundred after the first 100 (per month), then an about 300~500€/month wide band with 90% marginal tax rate, followed by iirc another couple hundred at 0% marginal, and then hitting around 20% marginal (going up in piecewise-linear progression)).
- guerrilla 4y agoI always have to ask: How does UBI not just result in inflation and we end up in the exact same situation as we are in now but with extra steps?
- chii 4y agoIf UBI is paid out through printing extra currency, it will induce inflation. But if UBI is paid out via extra taxation, then it will not induce inflation (or at least, not overall - it might induce some inflation in goods/services which wouldn't have been in demand but for the UBI, such as low cost labour). The higher taxes taken from the higher income people will reduce their demand, and thus balance out.
- guerrilla 4y agoThanks. That makes sense.
- crooked-v 4y agoUBI is a pretty small money faucet compared to the endless spending on foreign wars that the US political establishment regularly undertakes. Just give out the same amount of money to poor people instead of using it as a middle-class jobs program that kills foreigners.