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by jltsiren
628 days ago
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With UBI, the job effectively pays more, and the incentives to take it are stronger. A hypothetical example with arbitrary numbers: You get $20k/year in benefits. You are offered a job that pays $30k/year, but then you have to pay $5k in taxes and you lose the benefits. The job would effectively pay you $2.5/hour after taxes, which is not very attractive. With UBI, you get to keep the benefits, but you pay a 40% tax for all earned income. Your after-tax income would be $38k/year, and your effective wage would be $9/hour after taxes. Still not very good but much better than the $2.5/hour. |
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