Matt Bruenig, “How a Universal Basic Income Would Affect Poverty”

by | Oct 25, 2013 | Research | 1 comment

[Craig Axford]

This short blog post provides an overview of the basic income guarantee idea along with an easy to use calculator that enables visitors to calculate the cost of providing everyone in the United States with a basic income.  By experimenting with the calculator tool it’s possible to see how much various basic income levels will decrease poverty and how much of GDP the program will cost.

Matt Bruenig, “How a Universal Basic Income Would Affect Poverty,” Policy Shop, October 3, 2013.

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1 Comment

  1. godenich
    godenich on November 4, 2013 at 1:09 am

    $2750 a month for every adult, guaranteed? Switzerland’s considering it
    PRI’s The World – October 16, – pri org

    tradingeconomics com/switzerland/indicators
    8M Swiss:4.5M(56%) Work 136 hrs/mo@$2800/mo~=$20/hr -40%Tax=~= $12/hr
    GDI ~=4.5M * $2800 * 12 = 151.2B / GDP = 632.2B ~= 24%, eg, 1/4 of GDP

    Basic Income and the Free Market: Austrian Economics and the Potential for Efficient Redistribution (Exploring the Basic Income Guarantee) – Guinevere Liberty Nell –

    BIG – usbig net/papers.php

    tradingeconomics com/united-states/indicators
    (varied w GDP/GPI inflation adjusted w ~50% Population working)
    –
    315M US:145M(46%) work 136hrs/mo@$2100/mo~=$15/hr – ~35%Tax ~=$10/hr
    GDI~=145M * $2100 * 12 = 3.8T/GDP = 15.65T ~= 24%, say 1/4 of GDP
    Net $1400/mo per capita (age 0-18 college/vocation trust fund – 18yrs * 12 * 1400 = $300K – No early withdrawals or liens & premature death erases fund)
    –
    usgovernmentrevenue com/breakdown
    Graduated Personal Income Taxes of $2.2T plus Social Insurance Taxes of $1.5T = $3.7T
    –
    bber unm.edu/econ/us-tpi.htm
    Personal Income(46%) = $13.4T & $13.4T/145M ~= $92.4K /yr Gross ~= $60K/yr
    US Income(46%) ~= 92.4K/yr ~= $46/hour Gross ~= $30/hr (40+ hr/wk)
    Flat Personal Income Taxes @35% of $13.4T = $4.7 T
    –
    usgovernmentspending com/classic
    Net Tax Revenue = $4.7T – $3.8T = $0.90T to right-size 0.15T in Education & 0.05T in Government, 0.83T in Defense & 0.1T in Transportation. Cut 0.13T (130B) from budget.
    –
    Reduce Business Taxes to < current 0.5T on $0.23T P&I on 17T Debt & 0.036T on DHS.
    Leftover 1.2T Ad Valorem Taxes & 0.5T Fees & Charges of Revenue Surplus may apply to Extraordinary Public Medical Expenses, Infrastructure, R & D, Aid, etc, plus phase-in & exit costs from old system to new. Phase in over 4 years & exempt from tax those already age 67 getting full SS to exit old system. Insulate Taxpayer from Derivatives and other IB exposure w Global Glass-Steagall for a life of sound money & less uncertainty & squeeze in the markets.

    Leave issues of balanced budget amendment & existence of a Central Bank as opposing open issues since business tax may be slated for P&I on debt while business profit stimulates basic income :)