So, we you guys know, I recently updated my UBI numbers, giving us a much better picture of the tax rates needed to fund the idea in practice. But, someone asked recently how to fund a $9000 UBI recently, so I wanted to post an article on that specifically, with my new numbers.
For a baseline, you can read my main UBI idea here. These numbers rely on the work previously done there, as I'm just changing my formula a bit for a lower amount.
Target Amount: $9,000 for adults, $3,000 for children
Number of people: 244.42 million adults, 70.54 million children
Cost: $2.2 trillion + $212 billion = $2.412 trillion
Funding
Spending cuts
I'll keep most spending cuts, minus eliminating the standard deduction as the UBI is less than that and I don't want to tax people below the poverty line. People might wonder if some people might get more on welfare, but I'd imagine these would be extreme edge cases, my UBI should still be more generous than welfare and tax credits in most situations.
Welfare cuts- $275 billion
Military cuts- $156 billion
EITC cuts- $70 billion
Child tax credit cuts- $168 billion (includes Biden's expansion)
Total- $669 billion
Taxes
I'll keep the same tax structure, just at a lower rate than my main plan. Total funding base will be $14.789 trillion in income. This also includes social security and unemployment, as an alternative to cutting these programs more deeply.
Carbon tax- $187 billion
10.5% flat tax- $1.553 trillion
Total- $1.740 trillion
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Total- $2.409 trillion ($3 billion deficit from rounding)
And that's how you fund a basic income for $9,000/3,000. Thanks for coming to my Ted Talk.
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