[PragmaticPulp]

> If UBI could be implemented in around the same cost as the welfare programs it replaces, it would have a net zero effect on inflation.

UBI is, by definition, Universal (e.g. given to everyone). Welfare programs are highly selective and only apply to a small number of people.

The only way to make them cost the same is to massively reduce the benefits given to the small number of welfare recipients, then give the balance to people who didn't previously qualify for welfare.

That's never going to happen, politically.

[kwhitefoot]

UBI is taxable income. You just adjust tax rates slightly to claw it back from those with higher incomes. No extra bureaucracy required, no means testing needed.

[PragmaticPulp]

Yep, that's the myth of "universal" basic income: It would actually be taxed away for most of the population.

You may get $2,000/month for "free", but most people reading this would see their taxes go up by $30-40K/year to pay for the program. The money has to come from somewhere.

But that doesn't change the fact that if we pump money into a certain demographic, the assets they're buying will go up in price. In this case, it's the lowest cost housing that will go up in price.

[ChrisLomont]

> just adjust tax rates slightly

Show us some napkin math. Once you start doing estimates you will realize how untenable these proposals are.

Until you actually write down numbers, it's all pie-in-the sky unicorn dreams.

[Kim_Bruning]

You can refactor it to net 0. Take n tax brackets. For each tax bracket estimate how much x% income is raised by UBI, then raise the taxes in that bracket to that same x%.

In the $0 income bracket this would be tax_rate:=100% , in the >$100K bracket it might be tax_rate:=1%.

So now your UBI is paid for but it's not doing anything useful.

However, you can now tune your tax brackets "as per usual" to get a more desirable outcome; lowering taxes in the lowest bracket and raising them in the highest.

The new ability you get is that while previously your progressive tax brackets only allowed you to control the upper limit of the income band , you now also have the ability to control the lower limit of the income band.