Re:Finland considers basic income to reform welfare system
by sokoloff on Thursday August 20, 2015 @02:59PM
(#10093901)
So, if I'm following your math right, you're proposing a basic income of €1000 per person annually?
That would indeed be basic and probably too low to achieve what proponents want, which is to allow the elimination of other welfare programs for the truly disabled, etc.
I don't think this is impossible, but it's pushing the limits of what's possible.
To take one example, "social welfare" in Ireland is widely quoted as costing 20bn, about €370 per person. Maybe close to 500 per adult. If you could scoop 75% of that amount into a BI fund, you would be about half way to funding a BI scheme.
The other half would come from increased income tax, a low band increase. Realistically, there will be a break even point that probably should sit around median income. IE, for a median income person, their increased tax equals their BI income, more or less. So, a lot of that tax come from people who are still net beneficiaries. Most people are close to break even.
There is an extra tax burden but it's not an impossible one.