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> I am not sure about this, because the net amount is still new money in the economy No, the net amount is zero. Unless you're talking about literally printing money (in which case the costs are spread about in the form of inflation). There is no 'new money'. > Yes, a typical person is paying more taxes, but they will have net more money to spend or save: $BI - [Tax on $BI] is still > $0. You're ignoring the number of people who will be paying more in taxes than they will recieve. Even if you make the moral argument for taking their money and giving it to others, you can't ignore the fact that, without the additional tax, the money would literally be used in some other way, either as consumption or as investment. As a ballpark, if the payout is $5,000/person/year * 300,000,000 people = $150,000,000,000/year, that's $150,000,000,000/year that needs to be raised in taxes in order to cover the program. Every dollar that gets paid out has to be funded through money that would otherwise be in someone's bank account, and which they either would spend or would save (invest). |