Providing basic services should be more efficient than universal basic income

Re:Providing basic services should be more efficient than un... by hedora on Tuesday November 10, 2020 @10:53AM (#25047313)

One big advantage of universal basic income is that it could be used to simplify the tax code, and eliminate programs that are often gamed:

1) pay everyone the same UBI subsidy,

2) set income tax to a fixed percentage regardless of income source

3) eliminate most (or all) deductions.

If you don’t like (2), then add a second tax bracket at 10x median income. Note that even with a flat tax rate, (3) makes this proposal would much more progressive than the current US tax system.

Doing this would substantially reduce the size of the federal bureaucracy, since welfare and social security could be eliminated, as could most of the IRS.

Instead, the government could focus on public health (and drug rehab) programs, job training, education, etc.

All of this would be less adversarial than the current system, since “gaming” the government would just lead to being healthier and more employable, which is a net positive for society.

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Re:Providing basic services should be more efficient than un... by foxyv on Tuesday November 10, 2020 @11:43AM (#25047933)

You will always need the IRS. There are always cheaters when it comes to taxes. Even without deductions you would still see underreporting of income and under the table deals. Not to mention the brand new headache of cryptocurrency taxation.

[ Parent | on HN ]