If you want to provide truly livable UBI, it’d be even bigger than socialism. The working people would have to be taxed through the nose. And necessary professions like trash car drivers should be paid a crapton.
Let's have a look at Scandinavia or Germany. They have reasonably generous welfare systems, but they are means tested. So for the sake of argument, declare them to be 'truly livable'. Especially by global standards.
Now I claim, that you can get pretty much the same net payments (of means tested welfare - taxes) that these countries have today with a system of (UBI - taxes). Basically, at the moment both taxes and welfare are means tested; you could move to UBI by moving all the means testing from welfare to taxes.
Because net payments would be pretty much the same, all incentives would stay pretty much the same as today.
See also https://en.wikipedia.org/wiki/Negative_income_tax which is one way to implement something like a UBI.
Of course, if you want to go much beyond what Germany and Scandinavia are already paying, you'd need even higher taxes or a stranger economy.
Btw, per capita the US is one of the world leaders of social welfare spending. They spend more than France. (Mostly because while France spends a higher proportion of GDP, American GDP per capita is much higher.)
In euro style systems very few people receive welfare at a given time. Many people may receive it at some point in lifetime, but not at the same time. UBI would completely change the picture.
On top of that, salaries for basic jobs would need to get much higher to incentivize people to work. Thus UBI would have to be much higher as current welfare. Unless you expect citizens to live on UBI but keep services cheap with cheap migrant labor.
Not true. The 'B' in UBI means 'Basic'. UBI wil pay your rent, utilities, and food, but not much else. Now, there are some people that are willing to just exist on only the bare minimum, but that's a significant minority. The vast majority of people want more. There will be plenty of people willing to do minimum wage jobs to top-up their UBI so they can afford extras like holidays, nicer phones, meals out, etc...
The main difference would be that the security of UBI would give them more power to distch a job if they were being abused in some way, rather than being so desperate that even if their employer is abusing them they are forced to take it because they need the job to survive.
I feel like too much discussion on UBI is poisoned by the idea that the vast majority of people are bone idle and are willing to just sit at home doing nothing and just existing with the bare minumum required to live. It's just not true
No matter how you finance it, you can find other (better or worse) means to spend collected money.
In the name of simplicity, you might want to have a single government agency that assesses your income and net worth. Instead of having both the tax people and the welfare agencies do that and duplicate work.
So instead of having welfare payments phase out, you could just increase marginal income taxes by the same amount, and end up with exactly the same net payment structure.
Nope, in Germany you are required to work. If you can't find a job, you still have to try (and prove that), you need to stay at home / be available (and notify the state about your vacation or you might be punished by receiving less welfare) and of course you have to use up all money or wealth you have and state, in written, that you have no other sources of wealth.
So UBI would absolutely change incentives here.
Though in practice it's fairly easy to put in a token effort so your welfare won't be cut, but avoid actually getting hired.
But you are very right that the token effort is still effort.
> [...] and of course you have to use up all money or wealth you have and state, in written, that you have no other sources of wealth.
That is similar to taxing that money and wealth. But you are right.
With taxes, even crazy high, you can still accumulate wealth. Taxes slow you down, but it’s still possible.
With net-worth-ceiling to receive welfare, you’re forced you cannot accumulate wealth on welfare. And your previous wealth is gone before you get to earn welfare.
Got a nice house and BMW and decided to slow it down and live on welfare? Or, more likely, work under table and collect welfare too? Good luck with that :)
That's only true for income taxes, not for wealth taxes.
How are you going to pay those wealth taxes? (Assuming you have no income.)
Of course, same applies to welfare - you can only sell part of your stuff. But the caveat is you won't have access to welfare till you sell all of it AND spend the money you got.
Personally I like welfare-with-net-worth-threshold. Obviously it should not apply to unemployment insurance which is, well, insurance.
> Personally I like welfare-with-net-worth-threshold.
The only thing that really matters are net payments (and marginal net payments, ie how many cents can you keep from the next gross dollar you earn). It doesn't really matter whether the effective marginal tax rate is made up of income tax or a phasing out of welfare benefits or a combination of both (and throw in some other taxes etc, too).
In the name of simplicity, you might want to have a single government agency that assesses your income and net worth. Instead of having both the tax people and the welfare agencies do that and duplicate work.
(Though ideally, we'd use forms of taxation like land value tax where the government doesn't need to assess your income nor net worth in the first place.)
There’s no way taxing super-rich-only would cover fair UBI. It’ll have to be much much wider. Unless 99% of jobs would become automatized.