According to a new study by the Roosevelt Institute, the introduction of a universal basic income can fill the American Treasury of trillions of dollars.
Universal basic income is actually a monthly fixed allowance, which is nowhere bound. In other words it is necessary for the survival minimum, which is paid unconditionally to every citizen. How to dispose of them and how to build their lives based on base income everyone decides for themselves. The presence of this allowance is not a barrier to job search, study etc. Critics of the proposed system say that the project is too expensive to have a positive impact on the economy. In addition, fear they are getting a fixed amount of money monthly, in fact the people refuse to work, that will undermine the economy, because the government will lose tax base to Finance various programs.
Research Institute Roosevelt saw the universal basic income are quite different perspectives – positive.
The report examines three different models of a universal basic income:
- Full universal basic income where every adult receives $ 1,000 a month ($12,000 per year).
- Partial basic income where every adult gets $ 500 a month ($6,000 a year).
- Child support in which each child receives $ 250 a month ($3,000 per year).
Researchers believe that the use of any of these models, with it without raising taxes to pay for it, will significantly strengthen the economy. Federal debt, which is formed due to the beginning of the program gradually will be completed – within 8 years, but the GDP will increase and remain high for a long time. According to scientists, $ 12,000 a year per adult will forever strengthen the economy. Expected to rise from 12,56% to 13.10% — or about 2.5 trillion. dollars by 2025.
But that’s not all. The researchers came to the conclusion that the introduction of a basic income not only would reduce the number of employed persons, but also increase it to around 4.5 to 4.7 million people. And the number of jobs should increase by 2%.
Another interesting conclusion reached by researchers is that a universal basic income will be a great incentive for business development and save public funds. Like this? Very simple! Such monthly benefit gives the consumer more money to spend. Demand is growing, business is booming, jobs are being created and, very importantly, without any government subsidies and tax incentives.
The analysis was carried out using all the known systems of economic forecasting. In addition, the basis of the analysis laid down and practical data. For example, in Alaska a basic universal income is used for a long time. The range is from 800 to 2,000 dollars per family. Thus, the impact on employment is quite small. In some families one or two people can work part time, but full refusal of work was not observed. Experiment with universal basic income in Seattle showed that employment dropped by only 4%.
However, researchers still agree that initially without raising taxes with the introduction of a basic income under the current economic realities in the United States can not cope. And, if the basic income be taxed, the tax on additional income could double, and this is unprecedented in history, which is unlikely to get public approval.
To summarize, researchers at the University of Roosevelt, declare that a basic universal tax for America – a real opportunity to strengthen the economy, but to introduce it right now. Approach to many important economic systems should be revised and improved.
