Re:Finland's Largest Trade Union Slams Basic Income as ‘Usel...
by nabla9 on Friday February 10, 2017 @11:34AM
(#13616626)
I think most economists agree that UBI would reduce poverty traps and marginal tax rates on poor individuals even if they don't support UBI for other reasons.
In Finland these traps and marginal tax rates are especially large. Marginal tax rates on poor can be as high as 80-100+% depending on their situation (with single moms marginal tax rate can be higher than 100+ going to work makes things worse).
The discussion about UBI is framed into lazy bums vs. hard-working good people. Lazy bum argument is easy to counter when you point out that half of the low income workforce in retail would already get the same income from welfare programs if they would stop working. If they would be rational and not value work, they should quit. If people would realize that many of the poor people either can't work full time (due to mental or physical illness) and that their marginal tax rates are usually much higher than in any other income group, they might reconsider supporting UBI.
In Finland these traps and marginal tax rates are especially large. Marginal tax rates on poor can be as high as 80-100+% depending on their situation (with single moms marginal tax rate can be higher than 100+ going to work makes things worse).
The discussion about UBI is framed into lazy bums vs. hard-working good people. Lazy bum argument is easy to counter when you point out that half of the low income workforce in retail would already get the same income from welfare programs if they would stop working. If they would be rational and not value work, they should quit. If people would realize that many of the poor people either can't work full time (due to mental or physical illness) and that their marginal tax rates are usually much higher than in any other income group, they might reconsider supporting UBI.