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by jltsiren
754 days ago
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Pretty much every serious proposal, because that't the essence of the "basic income" part. In a system with income-dependent benefits, poor people usually have the highest marginal tax rates. Often something like 70-90%, and sometimes above 100%. Not because of nominal taxes but due to losing benefits when their income increases. Basic income can be largely cost-neutral. It would replace most common benefits, and it would be funded by most people paying a flat tax rate for all of their income. Typically you would see it only as an accounting trick: your nominal income tax is higher, but you receive a large automatic tax credit. People receiving benefits would have more incentives to work, which is the primary effect. |
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