Huge income tax evasion and money laundering. On a massive scale like we don't have today. It would be harder to detect
If you're doing the negative income tax, yeah. If you do plain UBI, no, because it's an unconditional payment.
Re:Policies that make the poor less poor
by dbsmith83 on Wednesday June 23, 2021 @01:01AM
(#27600966)
We're not talking about hiding money obtained via UBI
Then how will UBI encourage income tax evasion? You get it unconditionally so it won’t change anything…
Re:Policies that make the poor less poor
by dbsmith83 on Wednesday June 23, 2021 @10:33AM
(#27605001)
Again, we're not talking about UBI money, we're talking about money earned after UBI. Without UBI, people who work in cash businesses have to report a certain amount of income to justify their living expenses. With UBI, there is nothing to justify, and it makes it much easier to operate your own cash-only side hustles tax-free as long as you live in a place you can afford solely using UBI.
It is possible that there would be fraud around pretending to be a person when that person doesn’t exist, or continuing to collect benefits for someone who is dead.
But “are you a live person” is much harder to fake than “did you make sure you didn’t do these 6 illegible things that would make you ineligible”.