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A comment on UBI Would Likely Increase Poverty Rather Than Reduce It (2019). Parent comment

Re:UBI Would Likely Increase Poverty Rather Than Reduce It (... by keithnz on Monday October 10, 2022 @06:48PM (#33157318)
UBI has to be done with a tax policy, basically, you give everyone $10k (as the article nominates as a figure), but you'd tax that back off a lot of people. Ideally you tax it back based on wealth rather than income.
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Re:UBI Would Likely Increase Poverty Rather Than Reduce It (... by legitster on Monday October 10, 2022 @06:57PM (#33157387)
I understand that. Again, this is seperate from the funding issue.

You give everyone in America $10k dollars. At the end of the year you take that money back from 3/4 of them in taxes. But for 11/12 months, all that money is in grocery stores driving up prices.

You could be in a situation where you increase the baseline cost of living $10k in America (very regressively) and increase the tax burden.

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Re:UBI Would Likely Increase Poverty Rather Than Reduce It (... by lamontcg on Monday October 10, 2022 @08:31PM (#33158048)
> But for 11/12 months, all that money is in grocery stores driving up prices.

That just clearly isn't how it would work.

If I'm at the break-even point on taxes then the government will be sending me $833/mo checks to my bank account while my work will be withholding $833/mo extra from my paycheck. That has no real effect on my spending habits and won't drive any inflation.

Even if it was an annual lump sum with no additional withholding, where does the money to pay the taxes at the end of the year come from? You'd take next years UBI to pay off last years taxes and from then on it is net zero extra spending.

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Re:UBI Would Likely Increase Poverty Rather Than Reduce It (... by Gigachad on Monday October 10, 2022 @11:07PM (#33159054)
Does America not have some form of Pay As You Go system where the taxes are collected continually based on the estimation of your earnings and then corrected at the end of FY?
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