Bruce Bartlett -Goodman/Van Ripe
[Craig Axford – USBIG and Aynur Bashirova – BIEN]
In this New York Times column Bruce Bartlett, former senior adviser to Presidents Ronald Reagan and George H.W. Bush, provides a detailed overview of the history of the basic income guarantee idea and the arguments offered in its support. Using the upcoming vote in Switzerland as an introduction to the concept, efforts to make BIG official policy during both the Johnson and Nixon administrations as well as arguments favoring grants to every citizen articulated by Thomas Paine more than two centuries ago are described.
Barlett also writes about modern activists for the basic income guarantee, such as Jessica M. Flanigan. As an activist, Flanigan has published many articles in support of the initiative in which she calls BI, negative income tax. According to her and her supporters, the BI is needed as compensation for the negative effects of property rights on ordinary citizens, especially young people, who are suffering due to past consequences not related to them.
Bruce Barlett. “Rethinking the Idea of a Basic Income for All.” The New York Times. 10th December 2013.
Many advanced economies show workforce participation hovering around ~50% of population which could be used as a low watermark to support a BI.
Moderate libertarians may wish to tie BI to GDP/GPI and inflation. The Swiss Referendum is ~25% of GDP [tradingeconomics com/switzerland/indicators]. ” or about ~$12/hr net for 136 hours/mo work if you credit the portion of existing income as 50% of BI .
Given the above, the USA can achieve ~$10/hr net. Working it into the existing budget is doable and can be implemented by aging out the existing welfare system and prudently revise the budget and compress the tax system to use a flat 35% tax on Total Personal Income (TPI) with only Ad Valorem Taxes, Fees & Charges. [bber.unm edu/econ/us-tpi.htm].
To negate Malthusian fears, a trust fund can be set aside from the national economy for children until they reach their majority and dispersed if they reach their majority and improve the prosperity of future generations.
The incentive for emerging country governments to encourage a minimal of 50% of population to formally participate in and contribute to world markets is then clearly desirable.
The numbers can also show that this can be achieved without taxing companies at all. In addition, business no longer need have obligation to contribute to employee benefits, retirement or social insurance. That is an appealing idea to existing business and a definite plus for future entrepreneurs whose leanings are toward a more differntiated, competitive and free market.
The intangible benefits are clear to moderate liberals. Smoothing out the boom/bust cycle will not be lost on economists. Government will not ignore a stable tax revenue base. Business will reduce overhead costs and benefit from a stable consumer market during economic upheavel and technological disruption of markets.11