[AnthonyMouse]

> The main problem is tax havening, Hollywood accounting, and abusable tax loopholes.

But this is one of the other things that a UBI makes easy.

One of the best taxes in terms of resisting avoidance is a flat rate consumption tax. You can move your headquarters but you can't move your customers. You can't arbitrage the rate because it's uniform. The burden falls disproportionately on uncompetitive industries which have to eat the tax when a cost increase across the industry doesn't allow them to raise prices any further because they were already charging monopoly prices.

The normal problem with a consumption tax is that it's regressive. Everybody pays the same rate. But that's the part that gets fixed by combining it with a UBI. Someone making $50,000 may be paying a 35% marginal rate, and $17,500 in tax, but they get $12,000 of it back. Their effective rate is only 11%, even though everybody is paying the same marginal rate.

You get to have an increasing effective rate with increasing income while still having the fixed marginal rate that makes everything administratively simple, and the complexity was what enabled the avoidance.