- To a large extent, it is expected to replace current programs like welfare and social security. So those budgets, in theory, would be reduced or eliminated and supplemented with Basic Income.
- It will be a taxable income. So a family including two adults would have an additional $24k on which to pay taxes. Those taxes help pay for the program by effectively reducing the additional funding that needs to be raised.
- Theoretically, it will increase wages and employment since there will be a lot more money spent, increasing economic activity. Increasing both wages and employment increases tax revenues, which would again offset some of the cost. I think this is really the biggest factor that needs studying, as it seems to have the most influence on the decision to deploy BI. Ultimately, it is a macro economic decision. It is also the most difficult factor to model and predict without actually implementing it on a large scale. The most important question, in my mind, is what is the extent of inflationary pressure applied by BI?
- It will be a taxable income. So a family including two adults would have an additional $24k on which to pay taxes. Those taxes help pay for the program by effectively reducing the additional funding that needs to be raised.
- Theoretically, it will increase wages and employment since there will be a lot more money spent, increasing economic activity. Increasing both wages and employment increases tax revenues, which would again offset some of the cost. I think this is really the biggest factor that needs studying, as it seems to have the most influence on the decision to deploy BI. Ultimately, it is a macro economic decision. It is also the most difficult factor to model and predict without actually implementing it on a large scale. The most important question, in my mind, is what is the extent of inflationary pressure applied by BI?