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0 pointsint_19h4mo ago0 comments

I actually did the math for US once, calculating how much more tax it would take to give everyone minimum wage. The resulting tax rate would certainly be fairly high, but not excessively so; several European countries have higher brackets today, and their economy doesn't collapse.

But also, are you accounting for all the means-tested welfare that such a program would replace?

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Aurornis4mo ago

> But also, are you accounting for all the means-tested welfare that such a program would replace?

Multiply the US population by the poverty level annual income ($15.6K) and the resulting number is higher than all US federal tax revenue combined. In other words, tax rates would have to more than double across the board.

Subtracting out existing social programs barely moves the needle. Are you sure you did the math, or were you just assuming?

int_19hOP4mo ago

Yes, I did the math. Wish I still had the spreadsheet.

It's not as simple as multiplying the population. The point is that if everyone gets that check, then you can raise the nominal tax rate much higher but still get the effective tax rate (i.e. income - tax + UBI) in reasonable territory. As I recall I actually went all in and also made it a flat income tax to see how much the UBI offset would work at making it effectively progressive, and that also works out.

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