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Comment by jltsiren

Unemployment benefits and other income-dependent benefits are a strong incentive against working, unless the job pays particularly well. It's common that the effective tax rate for low-paying jobs is 80-90%, if you count lost benefits in addition to taxes. Sometime the rate exceeds 100%. In order to get unemployed people back to work against their own interests, unemployment benefits often come with strict time limits, a lot of surveillance and bureaucracy, and a general loss of dignity.

The "basic" in UBI aims to solve that by changing benefits and taxes. Everyone from the homeless to the billionaires gets the same benefits, while income taxes will make sure that most people won't see any additional money. The differences are only seen by people with low incomes. While the benefits may be a little lower, taking a low-paying job makes much more sense, as your tax rate may be as low as 40%.

Many old-school unions oppose UBI because it makes low-paying jobs more viable. They consider it morally wrong. According to them, if you work full time, the employer should pay you enough that you don't need any government handouts for a dignified live.

parent jltsiren 2 years ago

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