A fiscally neutral costing of a UBI of $300 has shown that flat income tax increases of 18% results in 91% of people being better off by a net of $8266 each. While 93.6% of people are better off by a net of $8259 if the top tax rate is increased to 63%. While a GST increase of 14.6% funding a UBI of $350 results in 95.7% better off by a net of $12217 each. Finally a tax free earning for the first $100,000 and a $400 UBI would require a GST increase of 31.1% resulting in 99% of people being better off by $19605 each. This is assuming a 90% spend of the UBI. Can we get these numbers checked by economists? Put all UBI schemes onto an interactive internet site so people can see what it means to them and vote?

**Do you like this suggestion?**

## Showing 15 reactions

## Sign in with

Facebook TwitterThe total cost net of savings of the UBI is about 40 Billion dollars. The 18% increase means 10.5% increases to 28.5%, 17.5% increases to 35.5% etc. The bottom 91% of earners are better off but there are disincentives for people working.

The increase of GST of 14.6% means 15% increases to 29.6%. The net of $12217 adds all the UBI received, deducts all the additional GST paid from normal spending and the additional spending of estimated 90% of the UBI. 95.7% of people get more money than they pay in GST.

If we add all the net results for all the people including the big earners who have negative results we get a total enrichment of the population (no it is not zero) in this instance it is $43Billion dollars which I have divided by the number of tax payers to get the average result of $12217. The reason for the net wealth gain is the “velocity of the money”. The whole of the economy will be better off with people spending more money – I have left out any income or corporate tax increases however.

The GST rate to cover the UBI and $100,000 tax exemption would need to rise 33.6% from 15% to 48.6% which is how the government books stay neutral. The enrichment of the population would be $69Billion dollars and to me this is the best option to take for financing a UBI.

I am really hoping that Gareth’s team of economists will take some time to audit my financial models and take up the challenge of putting this and more into a website to engage the people. We could deliver all the results to political parties including how many voted for which scheme and importantly how much of the UBI individuals would be likely to spend. This really helps the modelling.

“…a GST increase of 14.6%…” do you mean increasing the current rate to 17.19%?, and how do you reach $12217 net gain?

“…a GST increase of 31.1%…” i.e. take it to almost 20%? How is the rest of Government expenditure funded if income is tax free up to $100,000?

Personally I think we should be looking at wealth taxes to fund a UBI

More imporantly — Voters are likely to be sceptical about referenda in light of recent US and UK democratic debacles, so we should be very wary of schemes to ‘let the people decide’…