Who Would Win – Universal Basic Income vs Universal Basic Math
hint: it's math
So there are about 325 million people in the United States. Just to keep the math simple, let's call that 300 million. What would a good UBI be? Call it $10k? Well that's $3 trillion dollars.
For those who don't keep track of such things, the total federal budget is about $3.7 trillion. Not including Social Security and Medicare, $700 billion is spent on Welfare. So, you'd increase the federal budget to $6 trillion. That's a 62% increase.
That money has to come from somewhere. And even if you increased federal tax revenues by 62%, you'd still be increasing the federal deficit because revenues are currently less than expenditures. So to stay deficit neutral, you'd have to increase federal taxes by 71%.
So clearly $10k per person is too much. So let's make it $5k. Well, that's a little more realistic. It's only $1.5 trillion. Once again deducting the savings of $700 billion and you're only adding $800 billion to expenditures. (To put that in perspective, free college would cost something like $200 billion.)
See, here's the problem: There are about 100 million Americans currently on Federal Welfare (not counting SS or Medicare). They currently receive about $700 billion in aid. So that comes out to about $7k per person. Even if we say, what the hell, $50 billion of that is spent on government overhead, which is crazy when you consider education is $70 billion, but what the hell, I'll give you $50 billion in government overhead. That just knocks it down to $650 billion spread over 100 million which comes out to $6.5k per person. Still more than the $5k UBI. And $800 billion less expensive.
So here, let me some this up nicely for you: UBI would increase taxes dramatically and cut benefits to the poor.
If there's something I'm missing, be sure to let me know in the comments –as rudely as humanly possible Im sure– so I can correct my post. Cheers!
Submitted July 02, 2017 at 09:42PM by Wild_Space
via reddit https://www.reddit.com/r/economy/comments/6kx0rb/who_would_win_universal_basic_income_vs_universal/?utm_source=ifttt