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Re:Why we should fear a cashless world by AnthonyMouse on Monday March 21, 2016 @10:40PM (#11334068)
The problem with doing income redistribution at the state level is that citizenship is at the federal level. If Ohio decides to have a state welfare system and Michigan doesn't, Michigan's poor move to Ohio and the system collapses.

A good solution would be to create a universal basic income at the federal level funded by a no-exceptions flat tax on consumption, which keeps the federal government simple, and then let the states do everything else.

Re:Why we should fear a cashless world by EdSharkey on Monday March 21, 2016 @11:58PM (#11334330)
And having welfare programs in today's America draws the poor from other countries. Not sure how what you're describing is any different, just a different scale. Every year around springtime, hundreds of homeless will literally start a trek from Portland OR to Berkeley CA to get enrolled in their generous welfare programs. What you describe happens already.

You can believe that churches and governments can easily match and surpass whatever the federal government can dish out once economic power reverts to the States.

Re:Why we should fear a cashless world by AnthonyMouse on Tuesday March 22, 2016 @12:14AM (#11334394)
> And having welfare programs in today's America draws the poor from other countries. Not sure how what you're describing is any different, just a different scale.

The difference is, as already mentioned, citizenship. The US is under no obligation to provide welfare benefits to foreign nationals or grant them citizenship. US states have no equivalent way to prevent low income US citizens from moving there and claiming benefits.

> Every year around springtime, hundreds of homeless will literally start a trek from Portland OR to Berkeley CA to get enrolled in their generous welfare programs. What you describe happens already.

How is the fact that it actually happens supposed to disprove it?

Re:Why we should fear a cashless world by EdSharkey on Tuesday March 22, 2016 @05:41AM (#11335364)
I was just trying to allay your fears of invading hordes seeking the heavy train of benefit heavy states. Such migrations happen today, legal and not. A lot of business owners profit off of the illegals, whose presence is subsidized by government. Very wicked little underclass we maintain, not quite slavery in modern times, but still...

Perhaps when the States have to administer their own welfare programs, it will no longer be profitable for the individual states to shoulder the burdens of hosting the underclasses when neighboring states will not. Sanity might return to the immigration debate, it could be a really good thing.

Re:Why we should fear a cashless world by AnthonyMouse on Tuesday March 22, 2016 @10:17AM (#11336748)
> Perhaps when the States have to administer their own welfare programs, it will no longer be profitable for the individual states to shoulder the burdens of hosting the underclasses when neighboring states will not.

That was kind of my point. It isn't profitable already. Increasing the magnitude would make it unsustainable. There just wouldn't be any states offering the same level of welfare programs as the federal government currently does.

> Sanity might return to the immigration debate, it could be a really good thing.

Federal universal basic income to all citizens as a replacement for existing welfare would do the same thing. Immigrants who cut the line wouldn't get it (and all the other welfare programs would be gone), which would make living here too hard to be worth breaking the law. Then we could correspondingly increase the number of legal immigrants we accept because we'll have more capacity to integrate new legal immigrants without the people who cut the line.

Re:Why we should fear a cashless world by EdSharkey on Tuesday March 22, 2016 @12:25PM (#11337679)
> It isn't profitable already.

No? I'm glad you caught that. Illegal immigration IS profitable, that's why it continues to happen. The advocates seem to cross political lines too, everyone must be profiting from cheap labor.

I love unsustainable pants-on-fire arguments like this. Any country or state that is being overrun in a truly unsustainable way either ejects the invaders (or does worse to them) or ends up conquered.

> Federal universal basic income

It's fun to imagine how one would tinker with the system, but you're just rearranging the deck chairs on the titanic.

Re:Why we should fear a cashless world by newjersey on Monday March 21, 2016 @11:07PM (#11334171)
I love the idea of a no-exceptions flat tax on consumption. However, our GDP per capita is only about 53k. If we need to extract about $6.3k (a number I pulled out of my ass - this is about the current IRS standard deduction and is about $500 per month), we'd need about a 12% tax on every single financial transaction.

I am afraid this 12% tax will drive a lot of our economy underground forcing us to raise rates. How do we prevent that from happening?

https://www.google.com/search?q=us+gdp

Re:Why we should fear a cashless world by AnthonyMouse on Monday March 21, 2016 @11:21PM (#11334217)
VAT is the usual way. The total tax ends up being 12% (or whatever), but it ends up being a much smaller percentage of the total price at each stage because it's collected throughout the supply chain. And then business customers want to make sure the tax is being collected because they can't deduct the already-paid tax when the item is resold if it wasn't reported by the seller.
Re:Why we should fear a cashless world by newjersey on Tuesday March 22, 2016 @09:39AM (#11336442)
How does vat work in other countries? Is it one rate across the country? Do provinces and local government get any of this money? Are they banned from imposing an additional sales tax? I'd think you don't want additional sales tax if you have vat but then you'd lose some revenue for local government.
Re:Why we should fear a cashless world by AnthonyMouse on Tuesday March 22, 2016 @10:08AM (#11336677)
The simplest way to do it would be to add e.g. 8% to the VAT and then give that part to the state where the buyer lives to use for whatever they like. But there is no inherent reason why states couldn't keep their existing sales tax instead. I mean you never want additional any tax, but the money has to come from somewhere.