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by ajzinsbwbs
2147 days ago
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I hear this argument a lot but it makes no sense to me. Suppose UBI is $12k/year. Then as long as it costs less than $12k to identify a rich person, it’s cheaper to not pay the rich people than to pay everyone. In fact, we already have any agency that does this for most Americans called the IRS. The budget of the IRS is $12 billion, which comes out to about $100 per taxpayer. The cost of the IRS administering the tax system is less than 1% of the value of the money it raises. The IRS does things like check if people are eligible for credits and deductions they claim, and if they are due a refund. Clearly it’s much cheaper to employ an agency like the IRS to check the numbers than it is to just pay everyone. Increases to the budget of the IRS raise tax revenues, yielding a positive return. And since we already have the IRS, we don’t even need to fund a new agency to do this work for UBI. Compared to the overall cost of the UBI program (trillions of dollars) it would be trivial to fund the IRS to do means-testing. This would make UBI a much cheaper program, so it would be easier to fit into the budget. I don’t doubt that local welfare agencies are a shitty bureaucracy, and I wouldn’t advocate putting them in charge of UBI. |
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Furthermore, you can solve the same problem just by increasing taxes on the rich. If you send every rich person $12k, but also tax them $12k more per year, the money spent/saved is exactly the same as not sending it to them in the first place. So this statement you made is false:
> This would make UBI a much cheaper program, so it would be easier to fit into the budget.