by Karl Widerquist | Oct 16, 2015 | News, The Indepentarian
Alaska’s small basic income, the Permanent Fund Dividend (PFD), is coming under increasing political attacks as the state’s fiscal crisis grows. the dividend, in place since 1982, has been incredibly popular, but the double-hit of declining oil prices and declining oil production have created a fiscal crisis that has forced the state to look for new revenues. As Basic Income News has reported recently, both legislators and the Alaska public have shown an increased willingness to divert Permanent Fund earnings from the dividend to the state general budget.
As this year’s record-setting dividend checks of $2072 were being distributed, several editorials argued for reducing or eliminating the dividend and using that money to fill the state’s budget gap.
Craig Johnson, Chairman of the State House Rules Committee, recently spoke in defense of the fund, but went so far as to say only that touching the Permanent Fund should be a “last resort” that he does not support, “right now.”
Paul Jenkens, Tim Hale, and Mike Navarre have all written in favor of diverting funds from the dividend, and the Ketchikan Borough Assembly is considering a resolution urging the state to divert funds.
Some of the arguments are as simple as this statement from Tim Hale, “To me, it comes down to one thing: I’d rather lose my dividend than pay taxes.”
Hale’s attitude is very much the opposite to that of the founder of the dividend, the late Governor Jay Hammond, who believe that a dividend was far more important than a tax reduction. The dividend ensures that all Alaskans, rich and poor, share in the wealth of the state. Only people with substantial incomes benefit very much from lower taxes, and how much they benefit depends on the size of their income.
For more information, see the following articles:
Paul Jenkins, “Don’t tax Alaskans until state cuts to the bone and adopts endowment model for Permanent Fund.” Alaska Dispatch News, September 26, 2015
Tim Hale, “Use Permanent Fund earnings to pay for services – and cap dividend at zero.” Alaska Dispatch News, September 30, 2015
Mayor Mike Navarre, “Permanent Fund earnings can help keep state afloat. “ Fairbanks Daily Newsminer, September 27, 2015
Alaska Business News, “Johnson Touts Benefits of Dividends to Local Economy and Vows to Protect PFD.” Alaska Business News, October 2, 2015
Mary Kauffman, “Ketchikan Borough Assembly Considers Urging State to Include Permanent Fund in Fiscal Plan” Sitnews, October 03, 2015
by Tyler Prochazka | Oct 12, 2015 | News
freedigitalphotos.net
As researchers observe a growing income and social divide in the United States, some are calling for a Universal Basic Income (UBI) approach to remedy the problem. Oren Cass, a senior fellow at the Manhattan Institute, argues in a Washington Post article that he does not believe a UBI is the answer to America’s social woes.
Cass said he does not think that the rise of income inequality has created the “collapse” of social well-being in the United States. Instead, the article argues that addressing the weakening of community ties should be the focus of bettering society and a UBI may be a counterproductive approach.
The large cost of the UBI, and the potential to erode ties between workers and employees are two reasons Cass provides as opposing the UBI concept. He argues that an aggressive wage subsidy would be a more effective method of tackling poverty.
Oren Cass, “Basic income won’t fix America’s social divide” The Washington Post, Sept. 29, 2015.
by Tyler Prochazka | Oct 11, 2015 | News
freedigitalphotos.net
Too much reliance on the market or too much reliance on government both unravel societal bonds, argues American Conservative associate editor Jonathan Coppage. In a Washinton Post article, Coppage said even if a Universal Basic Income (UBI) seems reasonable, he thinks it would contribute to the dramatic erosion of civil society.
The great compromise between capitalists and socialists is the creation of the welfare state, Coppage said. However, Coppage argues that the ability to receive an unconditional income will dismantle community ties because people no longer have to work to receive an income. Rather, individuals would be tied to the federal government.
Jonathan Coppage, “The terrible cost of universal basic income” Washington Post, Oct. 1.
by Tyler Prochazka | Oct 10, 2015 | News
freedigitalphotos.net
One of the criticisms of a Universal Basic Income (UBI) is that it would harm innovation because creators would be taxed to pay for the income of others. However, Roy Bahat, the head of Bloomberg Beta, argues in a Washington Post article that a UBI may actually have the opposite effect.
A significant barrier to innovation is that it is difficult to find time to create new things when focused on making a living. The UBI could take away the stress associated with starting a new business, Bahat said.
According to Bahat, the increased taxation from a UBI program may not discourage innovation because the primary goal of creators is not to solely make money. Instead, the UBI will allow people to avoid jobs that stifle their innovation.
Roy Bahat, “To support innovation, subsidize creators” Washington Post, Oct. 2.
by Karl Widerquist | Oct 8, 2015 | News
This video was filmed by Basic Income NYC (the Universal Basic Income movement in the Greater New York City Area) on Basic Income Week. It asks passers-by what they would do with $1000 a month every month for the rest of their lives, and it receives some interesting responses.
Basic Income NYC, “What would you do?” Basicincome.nyc, September 15, 2015.
